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unenforceable agreements

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Cessions in security, parate executie, and performing unenforceable agreements

Photo of Patrick Bracher (ZA)
By Patrick Bracher (ZA) on July 7, 2023

In a decision involving an elaborate set of facts, the Supreme Court of Appeal reminded us of certain legal principles relating to parate executie and the performance of contracts which the law says have no force.

When an asset (in this case loan account claims) is ceded in securitatem debiti (as security), the principle of…

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