Delta Capital
Deed of Cession
The fundamental principle in cession is that the cedent must have the right to transfer personal rights. This aligns with the legal maxim “nemo plus iuris ad alium transferre potest quam ipse haberet,” meaning no one can transfer more rights than they possess. Thus, the cedent must either be the holder of the right or authorised by the holder to transfer it.
Capability of the personal right to be ceded
Personal rights must be capable of being ceded, with some exceptions:
- Contingent rights: These rights, though not immediately enforceable, are still capable of being ceded. This includes rights subject to time clauses or suspensive conditions.
- Future rights: The cession of future rights, or ‘spes’, is contentious. While some courts recognise the transfer of expected future rights, others maintain that actual transfer occurs only once the right comes into existence.
- Non-transferable rights: Certain rights, such as claims for maintenance or personal injury, are deemed too personal to be ceded.
- Delectus personae: If the debtor’s identity is crucial to the creditor, the right cannot be ceded without the debtor’s consent. This often applies in employment contracts where the personal nature of the obligation is significant.