Commentary

219 Assets and liabilities: book debts and creditors

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

219 Assets and liabilities: book debts and creditors

| Commentary

219 Assets and liabilities: book debts and creditors

One of the more significant intangible assets of an existing business may be the value of its book debts. These are quite frequently excluded from the sale arrangements1 but if they are to be included they will need to be assigned to the buyer. The usual way of assigning the benefit of contractual rights is by way of a statutory assignment2. A statutory assignment involves an absolute assignment in writing of the entire benefit of the contract, with written notice being given to the other contracting party3. A schedule of debtors, together

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