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
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