Transfer of Rights and Obligations Under DCFR and CESL: Interactions with English and German Law
The Common European Sales Law in Context – Interactions with English and German Law, Gerhard Dannemann and Stefan Vogenauer, eds., Oxford University Press, 2013
58 Pages Posted: 10 Mar 2013 Last revised: 13 Jun 2013
Date Written: March 8, 2013
The rules on assignment and transfer of rights and obligations are currently outside the scope of the proposed CESL. In contrast, the original DCFR from 2009 includes a chapter on these issues. Questions outside the scope of CESL are left to be solved by the ‘domestic’ provisions of the national law that is applicable under the relevant conflict-of-laws provisions. This paper is part of the larger CFR Context research project and explores interactions of the system of assignment of receivables under a future European contract instrument with both English and German national laws. This concerns above all other areas of law, for example the rules that apply upon the insolvency of one of the parties (in particular that of the assignor) and the rules on public policy. Key differences between the jurisdictions include, inter alia, the proprietary aspects of the assignor’s insolvency where the assignor is paid by the debtor, the priority rule for competing assignments, and the effects of a non-assignment clause. Here, the choice of the optional instrument rather than either English or German law will lead to diverging results and may therefore prejudice any of the parties involved.
Keywords: CESL, DCFR, assignment, receivables, prohibition on assignment, insolvency, public policy
JEL Classification: F15, G32, G33, H73, K12
Suggested Citation: Suggested Citation