What is the assignment of claims?

The credits of the claims is a legal and financial process that allows one side to transfer or "assign" the claim to someone else, provided that the other party is in full knowledge of the task and agrees. In this process, the party that converts the claim is called an advanced, and the party to which the entitlement is transferred is called the acquirer. This situation essentially entitles the acquirer to the rights previously held by the assignment, according to claim or contract. However, the provision of claims may also include the transfer of certain obligations and legal obligations to the acquirer. In the US, companies are adhered to "by allocating the 1940 receivables Act to make a claim when the contract between the company and the client expires or is going to expire. One Concest of the Law is that they participate in the contract of $ 1,000 or higher; If the sum is lower than that, then the assignment may not be able to push through.

the company canAssign only the acquirer of "financial institutions" such as banks, government credit agencies or trusted companies or corporations. This condition ensures that the acquirer is able to take over obligations regarding the claim, especially for financial aspects. The existing contract between the advancing and another party should also not give any problem with the allocation of the new acquirer; Otherwise, the party with whom the assignment is to sue the progressing for breach of the contract. Another condition would be that the assignment can only be entitled to only one acquirer and that it could not transfer the claim to another side.

Many cases make it formally admitted, especially in terms of ownership of high value, such as a huge amount or money, land or forms of securing. In general, the courts do not have to examine why the assignment was submitted, but they require submission primarily for the purposes of documentation. Another contract should be concluded in this process that states that the claimwill be transferred from the progressing to the acquirer. Once the contract is agreed and both parties voluntarily signed the contract, the assignment of the claims is complete and the novitation will take place, making the acquirer a new holder of the claim.