CHAPTER 8

• Warranties of the Assignor of Credit:

  1. The existence of the credit at the time of assignment
  2. The legality of the credit at the time of assignment unless the assignor sold it as doubtful
  3. If expressly stipulated or unless the insolvency was prior to the sale and of common knowledge, the solvency of the debtor.
• Liabilities for violation of warrants

  • Assignor in Good faith:
  • Price received
  • Expenses of the contract
  • Any other legitimate payments by reason of the assignment
• Liabilities for violation of warranties

  Assignor in Bad faith:

  • Payment of the price
  • All the expenses
  • Damages