This update considers the validity of a transfer agreement under which one party instructs another to transfer funds to a third-party creditor of the instructing party, when the instructing party is declared bankrupt before completion of the transfer.
Introduction
A 'transfer agreement' is defined in the Civil Code(1) as follows:
"Whoever transfers to another party (the transferee) a performance of a third party (the transmittee), he shall authorize thereby the transferee to accept that performance and the transmittee to effect it on the account of the transferor."
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