Trading debts Clause Samples

The 'Trading debts' clause defines the rules and procedures for the assignment or transfer of debts that arise from commercial transactions between parties. Typically, this clause outlines whether a party may sell, assign, or otherwise transfer its right to receive payment from another party, and may specify any conditions or restrictions on such transfers, such as requiring prior written consent. Its core practical function is to provide clarity and control over the transferability of receivables, thereby managing the risk of dealing with unknown third parties and ensuring that all parties are aware of and agree to any changes in the creditor.