Deed of Cession and Direct Payment Agreement

DEED OF CESSION AND DIRECT PAYMENT AGREEMENT
Entered into by and between
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(hereinafter referred to as the "cedent”)
And
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(hereinafter referred to as the “cessionary”)
And
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(hereinafter referred to as the “council/municipality/local authority”)

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1 WHEREAS the cedent is obliged to supply and deliver material to
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(hereinafter referred to as the "council/municipality/local authority")
in terms of contract number
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(hereinafter referred to as the "contract")
entered into by and between the cedent and the council/municipality/local

authority.
2 AND WHEREAS the cedent is desirous that the material be supplied and delivered
to it and the cessionary is prepared to supply and deliver the material to the
cedent, provided that the cedent cede to the cessionary, the cedent's right, title
and interest in and to its claim to payment from the council/municipality/local
authority in terms of the contract referred to in paragraph 1 supra.
3 AND WHEREAS the council/municipality/local authority takes notice of the

cession embodied in this agreement and is prepared to agree that it will pay to the
cessionary all amounts payable to the cedent pursuant to the contract referred to
in paragraph 1 supra.
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4 NOW THEREFORE IT IS AGREED AS FOLLOWS:
CESSION
5 The cedent hereby cedes, transfers and makes over to the cessionary, its right,
title and interest in and to any amount due and owing by the
council/municipality/local authority in terms of the contract referred to in
paragraph
1 supra.
6 It is recorded that the terms of this agreement will be binding on the

council/municipality/local authority on the date which the
council/municipality/local authority's duly authorised body/person adopts a
resolution binding the council to the terms of this agreement.
7 The cessionary shall be obliged to furnish to the engineer/architect/quantity

surveyor (QS), by the 7th of each month, all invoices pertaining to material
supplied to the cedent in the preceding month and any other documentation
and/or information so as to enable the engineer/architect/QS to include the
aggregate amount of the invoices in a certificate for payment.
8 8.1 It is recorded that the council/municipality/local authority's liability in terms

of this agreement shall be limited to an amount certified for payment by
the
engineer/architect/QS.
8.2 The obligations of the council/municipality/local authority to the cessionary

are confined to the provisions of this agreement and are subject to the
rights and obligations of the council/municipality/local authority and cedent
in terms of the contract referred to in paragraph 1 supra.
9 The cession shall remain in force for as long as the cedent is indebted to the
cessionary for material supplied and will expire on the date when the debt payable
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by the cedent to the cessionary has been extinguished.
10 It is recorded that this cession constitutes security for payment of the amount
payable by the cedent to the cessionary and shall in no way be regarded as
extinguishing the liability of the cedent towards the cessionary.
11 Any payment made by the council/municipality/local authority to the cessionary,

shall pro tanto reduce the cedent's liability to the cessionary, and shall similarly
reduce the council/municipality/local authority’s liability to the cedent.
12 It is recorded that the cessionary reserves the right to suspend delivery of material
to the cedent in the event where payment of any amounts due by cedent to
cessionary are overdue.
13 It is recorded that the cessionary reserves the right not to supply any material to
the cedent until such time as this agreement is duly approved by the
council/municipality/local authority as envisaged in paragraph 6 supra.
14 Ownership in all goods supplied by the cessionary to the cedent shall remain
vested in the cessionary until such time as the value of such material has been
paid by the council/municipality/local authority in terms of this agreement or by
the
cedent.
15 The parties acknowledge that any cancellation, variation, withdrawal or

amendment of this agreement shall only be valid and effective if reduced to
writing and signed by all parties hereto.
16 This agreement constitutes the whole agreement between the parties and no
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warranties or representations, whether express or implied, not stated herein, shall
be binding on the parties.
SIGNED AT ______________________________________________ ON THIS THE
_______________ DAY OF _________________________________________ 20 ________
AS WITNESSES:
1_______________________________
__________________________________________
CEDENT
Herein represented by
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In his/her capacity as
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2______________________________
_______________ DAY OF _________________________________________ 20 ________
AS WITNESSES:
1______________________________
____________________________________
CESSIONARY
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2______________________________
_______________ DAY OF _________________________________________ 20 ________
AS WITNESSES:
1_______________________________
________________________________________________
for and on behalf of
COUNCIL/MUNICIPALITY/LOCAL AUTHORITY
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2______________________________

Deed of Cession and Direct Payment Agreement

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DEED OF CESSION AND DIRECT PAYMENT AGREEMENT

Entered into by and between

(hereinafter referred to as the "cedent”)

(hereinafter referred to as the “cessionary”)

(hereinafter referred to as the “council/municipality/local authority”)

(hereinafter referred to as the "council/municipality/local authority")

in terms of contract number

(hereinafter referred to as the "contract")

entered into by and between the cedent and the council/municipality/local

3 AND WHEREAS the council/municipality/local authority takes notice of the

4 NOW THEREFORE IT IS AGREED AS FOLLOWS:

6 It is recorded that the terms of this agreement will be binding on the

7 The cessionary shall be obliged to furnish to the engineer/architect/quantity

8 8.1 It is recorded that the council/municipality/local authority's liability in terms

8.2 The obligations of the council/municipality/local authority to the cessionary

11 Any payment made by the council/municipality/local authority to the cessionary,

15 The parties acknowledge that any cancellation, variation, withdrawal or

SIGNED AT ______________________________________________ ON THIS THE

_______________ DAY OF _________________________________________ 20 ________

SIGNED AT ______________________________________________ ON THIS THE

_______________ DAY OF _________________________________________ 20 ________

SIGNED AT ______________________________________________ ON THIS THE

_______________ DAY OF _________________________________________ 20 ________

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