DCC 188/2006 on 13/3/2007

This case involved the importance of an agreement between the assignor and assignee on the assignment of rights,

Background

This case involved the assignment of the right of recovery.

Decision

The court was guided by the provisions of Civil Code (Federal Law No. 5/1985) relating to the assignment of debts and obligations in determining the validity of an assignment of a right. The court held that an assignment of a right takes place by agreement between the assignor and the assignee as against the obligor. An assignment in that respect was a contract between the assignor and the assignee, which must satisfy all of the necessary elements including consent, subject matter and cause.