Contracts and obligations · Legal glossary
Assignment of debtIn Arabic: حوالة الدين
Definition
An assignment of debt is a contract that moves the obligation from the original debtor, the assignor, to another person, the assignee.
How it varies across the GCC
Article 248 of the Saudi Civil Transactions Law defines it. It is not an assignment of rights: there the creditor’s claim moves, here the debtor’s debt moves.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Civil Transactions Law, art. 248https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1