ASSIGNMENT

BULK SALES LAW

Chapter 14

ASSIGNMENT

Nature of Assignment
Compare & contrast
Sale - Assignment
Subrogation - Assignment

Validity and Binding Effects

Binding Effects as to 3rd Parties
Effect if Debtor has/has no knowledge of Assignment

Effect of Assignment of Credit on Debtor

Chapter 14

ASSIGNMENT

Transfer of Ownership
Accessories and accessions
Warranties

Assignment of Credit in Litigation

Right to Redeem

Assignment of Copyright
Assignment as an Equitable Morgtage

Chapter 15

BULK SALES LAW

Concept of Bulk Sales Law

Reason for its creation

What is Covered and NOT Covered

WHO Are Covered
WHAT are the Requirements
Prohibitions
Consequences

Void
Innocent purchaser

Penalty

Chapter 16

Assignment
How often has it been heard in layman conversations that a person does
not want a mere assignment but an outright purchase of the subject
matter?
How many country clubs have refused to honor a deed of assignment
covering the transfer of a proprietary share in favor of the assignee on
the ground that a deed of absolute sale is required, to ensure that
only one person has a right to the corresponding membership
entitlement?
Has it not been the common perception that the process of assignment
covers the temporary lease or use of the thing, while the title remains
with the assignor to whom it would ultimately have to be returned?
Why has assignment become the poor relations of sale?

Definition and Nature of Assignment

Assignment is the process of transferring the right of
assignor to assignee who would then have the right to
proceed against the debtor.
The assignment may be done gratuitously or onerously, the
assignment has an effect similar to that of a sale.

Definition and Nature of Assignment

In its most general and comprehensive sense,
an assignment is a transfer or making over to another of the whole
of any property, real or personal, in possession or in action, or of any
estate or right therein.
It includes transfers of all kinds of property, and is peculiarly
applicable to intangible personal property and, accordingly, it is
ordinarily employed to describe the transfer of non-negotiable choses
in action and of rights in or connected with property as distinguished
from the particular item or property. PNB v. CA, 272 SCRA 291 (1997).

Definition and Nature of Assignment

Under Article 1624 of the Civil Code, assignment is in fact the sale
of credits and other incorporeal rights.
Although credits and other intangible things within human commerce are the proper object of a
contract of sale as defined in Article 1458 of the Civil Code,

assignment is the proper, or rather the technical, term that should

be used. Therefore, although a Deed of Sale of Shares of Stock is
legally correct, it is technically innacurate, since the proper term is
Deed of Assignment of Shares of Stock.

Compare and Conrast Sale and Assignment

Under Article 1624 of the Civil Code, assignment is in fact the sale
of credits and other incorporeal rights.
Although credits and other intangible things within human commerce are the proper object of a
contract of sale as defined in Article 1458 of the Civil Code,

assignment is the proper, or rather the technical, term that should

be used. Therefore, although a Deed of Sale of Shares of Stock is
legally correct, it is technically innacurate, since the proper term is
Deed of Assignment of Shares of Stock.