THE ROLE OF ASSIGNMENT IN FACTORING CONTRACTS

Abstract

A factoring contract is a legal transaction based on the institute of assignment. Such an assignment is based on the contract and is voluntary.

A client" s accounts are assigned to a specialized firm (factors), which usually takes over the risks of the collection of such accounts from the debtor (buyer o goods).

Generaly factoring contracts always involves the assignments of all accounts receivable of the client (coming from the sale of goods), both existing and future ones. Cause the factoring contracts provides the global assignments of all accounts receivable of the client, including those which may not be transferred, such agreement may cause difficulties in the implementation of the factoring contract.

In this article author analyses the most importante role of assignment in factoring contracts.