Open AccessAssignment of Claim Against an Insolvent Debtor: Ways to Protect the Assignee’s Rights in Case of Presence of Grounds for Claim Subordination
Author(s) -
Dmitriy Fedotov
Publication year - 2021
Publication title -
ûrist
Language(s) - English
Resource type - Journals
ISSN - 1812-3929
DOI - 10.18572/1812-3929-2021-2-57-62
Subject(s) - subordination (linguistics) , debtor , insolvency , business , order (exchange) , law , law and economics , creditor , political science , economics , debt , finance , philosophy , linguistics
The article discusses methods to protect the rights of the assignee from the dishonest behavior of the assignor, who, when concluding the contract, has concealed the right to claim the right to claim grounds for lowering the order of satisfaction of such a claim against the insolvent debtor. It is proved that the best means of protection at the stage of concluding a contract would be to use the institution of assurance of circumstances or to establish in the contract the right of the assignee to unilaterally terminate the contract in case of subordination of the claim. If the contract does not establish mechanisms for protecting the rights of the assignee, then the optimal solution for the assignee would be to challenge the contract as concluded under the influence of a material misconception.