OpenLegislation

Section 17 Abolition of certain rules of lawI1I2C1

Scotland

(1)

The following rules of law are abolished insofar as they apply to an assignation of a claim to which this Part applies—

(a)

any rule whereby a mandate may operate as an assignation of a claim,

(b)

any rule whereby an assignation is rendered ineffective by an instruction to the debtor by an assignee of a claim that the debtor perform to the assignor,

(c)

any rule whereby an assignee of a claim may sue in the name of an assignor, and

(d)

any rule as to warrandice to be implied—

(i)

in assigning a claim, or

(ii)

in providing, in a contract or unilateral undertaking, for the assignation of a claim.

(2)

But subsection (1)(c) does not affect the application of any enactment, or any rule of law, as respects subrogation.

Annotations

Modifications

C1

Pt. 1 extended (with modifications) (1.4.2025) by The Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275), arts. 1(2), 3 (with arts. 4, 20)

Commencement

I1

S. 17 not in force at Royal Assent, see s. 121(2)

I2

S. 17 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2