Obligor's Responsibility after Acknowledging an Assignment under Supply Chain Finance
Assignment Gone Wrong
Understanding the legal consequences when a payment goes to the wrong person after an assignment of receivables in Cambodia.
groupsThe Key Players
The Obligor
The person or entity who owes the debt (the debtor).
The Assignor
The original creditor who transfers their right to receive payment.
The Assignee
The new creditor who receives the right to collect the payment.
ruleThe Foundation: Assignment of a Claim
An assignment, or អនុប្បទានសិទ្ធិ, is a legal agreement where the Assignor transfers their right to collect a debt to the Assignee. For this to be legally binding on the Obligor, a crucial step must happen:
The Assignor must inform the Obligor about the transfer.
The Obligor must acknowledge and agree to the assignment.
This notice or consent needs an instrument with a fixed date to be effective against other third parties.
help_outlineThe "What If" Scenario
The Obligor properly acknowledges the assignment and gives consent to the Assignee. But then... they make a mistake and pay the money to the original creditor, the Assignor.
gavelLegal Breakdown: The Aftermath
According to Cambodian law (specifically referencing the principles in Article 505 of the Civil Code), once the Obligor gives consent without objection, their obligation is locked in with the Assignee. The payment to the Assignor is considered invalid from the Assignee's perspective.
errorFor the Obligor: You Must Pay Again
The payment to the Assignor does not extinguish the debt owed to the Assignee. The Obligor is still legally liable for the full amount and must pay the Assignee.
check_circleFor the Assignee: Your Right is Protected
The Assignee's right to collect the debt is protected. They can legally demand full payment from the Obligor, regardless of the Obligor's misdirected payment.
sync_problemThe Obligor's Only Recourse
The Obligor effectively pays twice. Their only legal path to recover the first, incorrect payment is to pursue the Assignor directly to get their money back. This can be a difficult and costly process.
starThe Golden Rule of Assignment
Once you, as the Obligor, have acknowledged and consented to an assignment, your legal duty is to pay the NEW creditor (the Assignee). Always verify and direct payment to the correct party after an assignment is confirmed.
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