Chapter five
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SCHOOL OF LAW A THESIS SUBMITTED IN THE, CHALLENGES OF CASE MANAGEMENT IN SOMALILAND HIGH COURT
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- HEIRS AND CREDITORS OF THE PARTIES
Assignment of ObligationArticles 1983 to 1985 of the Civil Code consider special forms of delegation, which all rest on the same idea of an amalgamation of estates which include both assets and liabilities, thus making the identification of individual debts, and by consequence, their precise delegation, very difficult. In the case of the assignment of an estate or an undertaking the acquirer (buyer) will be liable to the creditors for all the liabilities from the day he notified them of the assignment or published the transaction in the newspapers (Article 1983 (1) of the Civil Code). Note the imprecision here about the identity of the newspaper; "Herald or Tribune?" This calls for serious formalities to guarantee the effectiveness of such publicity measures. The assignee will be guaranteed by the joint liability of the assignor for a two year term from the publicity measures when debts are due, or from the date of maturity of the debtors in all other cases (Article 1983(2) and (3) of the Civil Code). Articles 1984 and 1985 of the Civil Code address respectively the issue of merger (amalgamation) of companies and the transformation of an individual undertaking into a general or limited partnership. Where two or more undertakings having independent legal personality of their own merge by the mutual transfer of their assets and liabilities, the new undertaking formed will be held liable for the debts of each undertaking as per Article 1984 of the Civil Code. The last instance where the assignment of obligations may occur is in cases where an individual undertaking or a sole proprietorship having no legal personality of its own is transformed into a general or limited partnership. After the transformation a new juridical person is born which undertakes the liabilities of the former individual undertaking as per Article 1985 of the Civil Code. Introduction The last instance in which contract produces effect is upon heirs and creditors of the parties. The heirs of the contracting parties may be accorded the right to acquire rights and duties from a contract made by the deceased by the mere fact that they are heirs. This is clearly governed by Articles 1986 and 1987 of the Civil Code. Similarly, creditors are accorded with certain rights so as to make them able to enforce their rights. These rights include preservatory measures and revocation, among others. Such rights are provided under Articles 1988 through 1999 of the Civil Code. Download 53.56 Kb. Share with your friends:
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