Explanation of Article 237
This article addresses the statement of "Effects of Assignment of Right," which are: the consequences that result from the assignment of the right. The article stipulates that the effects of the assignment of the right include:
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First: "Transfer of the right to the new creditor," which means: the new creditor becomes the rightful owner and has the right to claim the debt from the debtor.
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Second: "The debtor remains liable for the debt," which means: the debtor remains responsible for the debt and is not discharged from it except by fulfilling it to the new creditor.
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Third: "Transfer of guarantees and accessories," which means: the guarantees and accessories provided for the debt are transferred to the new creditor, such as: mortgage, surety, interest, and the like.
It should be noted that this provision applies to all types of rights, whether they are contracts, acknowledgments, discharges, or otherwise.
This article is considered one of the most important articles related to the effects of the assignment of right, and it clarifies the impact of the assignment of right on the obligation.
Related To
Article 237
In case of an indivisible obligation with multiple creditors or multiple heirs of a creditor, each creditor or heir may demand the full performance of the obligation. If a creditor or heir objects to such demand, the debtor shall be liable for the performance of the obligation to all the creditors or heirs collectively or to deposit the thing subject of the obligation with an entity to be designated by the Minister of Justice. The other creditors or heirs shall have the right of recourse against the creditor for whom the obligation was performed, each to the extent of his share.