Introduction

The legal concept of cession, in terms of South African law, was defined in Johnson v Incorporated general insurance Ltd¹ as:

“an act of transfer to enable the transfer of the right to claim to take place.²  Accomplished by means of an agreement of transfer entered into between the cedent and the cessionary and arising out of a justa causa, from which the intention of the cedent to transfer the right to claim³ appears or can be inferred and from which the intention of the cessionary to become the holder of the right appears or can be inferred”.⁴

In simple terms, according to the online Oxford dictionary, cession is “the formal giving up of rights, property, or territory by a state”⁵ and in terms of the Free dictionary “the act of relinquishing one's right”⁶

Thus, cession is clearly distinguishable from contracts, in that it does not create obligations⁷ and further from delegation and subrogation which do not involve the actual transfer of rights.⁸

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Nicolene Schoeman-Louw
Attorney, Conveyancer, Notary Public and B-B BEE Consultant
LLB cum laude (UFS) LLM commercial law / B-B BEE (UFS)  Website: www.schoemanlaw.co.za
Address: 8th Floor, 80 on Strand Street, Cape Town, 8000  PO Box 507, Cape Town, 8000