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Cession Document

This document is a Deed of Cession for Direct Payment between a Cedent (Main Contractor) and a Cessionary regarding a construction contract with the Harry Gwala District Municipality. The Cedent cedes their rights to a portion of a claim for payment to the Cessionary, who will receive progress payments upon submission of certificates by the Engineer. The agreement includes warranties, authority for notification to the Client, and acknowledgment of receipt by the Client.

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Siyabonga Ntshele
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95 views3 pages

Cession Document

This document is a Deed of Cession for Direct Payment between a Cedent (Main Contractor) and a Cessionary regarding a construction contract with the Harry Gwala District Municipality. The Cedent cedes their rights to a portion of a claim for payment to the Cessionary, who will receive progress payments upon submission of certificates by the Engineer. The agreement includes warranties, authority for notification to the Client, and acknowledgment of receipt by the Client.

Uploaded by

Siyabonga Ntshele
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

DEED OF CESSION FOR DIRECT PAYMENT

PARTIES

Memorandum of agreement entered into by and between

Cedent (Main Contractor)

Herein represented by : ___________________________________________________

Full names of representative


Duly authorized thereto (herein referred to as the Cedent)

AND

Cessionary

Herein represented by _____________________________________________________


Full names of representative
Duly authorized thereto (herein referred to as the Cessionary)

BASIS OF AGREEMENT

Whereas the Cedent has been awarded the tender by the Harry Gwala District
Municipality (herein referred to as the Client) to does certain construction work on behalf
of the client at?

CONTRACT No.

Whereas the Cedent has hired plant and equipment listed in Annexure A hereto from /
had services rendered on its behalf by the Cessionary worth a total sum of R___________
including vat.

And whereas the Cedent has agreed to grant to the Cessionary the Cedent’s right, title and
interest in and to a portion of the said claim equal to the amount due to the Cessionary by
the Cedent stated hereinabove.

AND WHEREAS the Cessionary acknowledges that it shall be entitled to periodical


(progress) payments which are subject to the submission of certificates for payment by
the Engineer as provided for in the tender documents constituting an agreement between
the Cedent and Harry Gwala District Municipality.

Page 1 of 3
NOW THEREFORE IT IS AGREED AS FOLLOWS:-

1. CESSION

In execution of the abovementioned contract of hire / sale / services rendered the Cedent
hereby cedes to the Cessionary the Cedent’s right, title and interest in and to the said sum
of R___________________ being a portion of the said claim.

2. AUTHORITY

The Cedent hereby authorizes the Cessionary to notify Harry Gwala District Municipality
of this cession.

3. WARRANT AND LIABILITY FOR DAMAGE

It is understood and agreed that the Cedent warrants the existence of and validity of the
said claim.

4. ACCEPTABLE

The Cessionary hereby accepts the said cession upon and subject to the terms and
conditions of this agreement.

SIGNED at _____________________on this ________day of _____________2020

WITNESSES

1. ____________________ ____________________________
Cedent

2. ____________________ ____________________________
Cessionary

3. ____________________ ____________________________
Engineer

ACKNOWLEDGEMENT OF RECEIPT OF NOTICE OF CESSION BY CLIENT

Page 2 of 3
The Client acknowledges receipt of the Deed of Cession between the Cessionary and the
Cedent.

Received at _____________________on this ________day of _____________2020

_______________________________________________________________
HARRY GWALA DISTRICT MUNICIPALITY

OFFICAL STAMP

OFFICAL STAMP

Page 3 of 3

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