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Civil Law

Explanation of Article 274

Explanation of Article 274

This article addresses the statement of the "conditions for the assignment of rights," which are: the conditions that must be met for the validity of the assignment of rights. The article stipulates that the conditions for the assignment of rights include:

  • First: "The right must be assignable," meaning: the right must be one that can be assigned. Personal rights or rights that are non-transferable by statutory provision cannot be assigned.

  • Second: "The right must be known," meaning: the right being assigned must be known. An unknown right or an unspecified right cannot be assigned.

  • Third: "The assignment must be explicit," meaning: the assignment must be clear and decisive, without any ambiguity or hesitation. For example, the assignment cannot be implicit, conditional, or unknown.

  • Fourth: "The debtor must be notified of the assignment," meaning: the debtor must be informed of the transfer of the right to the new creditor. The assignment does not have any effect on the debtor's rights until they are notified of it.

It should be noted that these conditions do not affect the existence of the right but rather its assignment.

This article is considered one of the most important articles related to the conditions for the assignment of rights, as it clarifies the impact of these conditions on the obligation.

Related To

Article 274

  1. If a debtor owes multiple debts of the same kind to the same creditor and the payment made by the debtor is not sufficient to settle all such debts, the debtor may impute payment to the debt he intends to pay, unless an agreement or a legal provision precludes such imputation.

  2. If the debtor makes no imputation, as specified in paragraph (1) of this Article, and it is not possible to reach the debtor, payment shall be imputed to the debt due or soon to be due. If all debts are due or deferred to the same time, payment shall be imputed to the debt that is most burdensome to the debtor. If the debts are equally burdensome, the creditor may designate the debt to which payment is imputed.