They can also separate the two agreements. As noted above, the SCA has established that a transfer is a bilateral legal act by which the Cedent transfers its rights to the members of the assignment. No formality is required for the agreement of commitment or the deed of surrender itself, although the parties may agree on formalities to which the assignment must be completed. The assignment may be express or implied or may be deducted from the conduct of the parties. While the assignment does not need to be reduced to the letter, the parties may agree that it must be written, but it is only valid if it is reduced to the letter. The SCA reviewed the deed of assignment to determine the intentions of the parties. It is a principle of treaty interpretation whereby words must assign their meaning within the framework of the agreement and apply to the purpose to which they relate. The parties to the SCA intended that the bank, by signing the transfer decision, would transfer the right to misconduct to LA DG Brews. The SCA criticized the court`s approach, which treated DG Brews as a surety, and criticized the fact that it did not distinguish between the transfer agreement and the assignment itself.

In the case of non-proportional reinsurance, the reinsurer is liable if the cedent`s losses exceed a certain amount designated as a priority or retention limit. As a result, the reinsurer does not have a proportionate share of the premiums and losses of the insurer that has withdrawn. The priority or retention limit may be based on a type of risk or a whole category of risk. Thus, in schematic form, the deed of dress between the debtor and the assignor becomes the cause of the assignment for the real agreement between the assignor and the assignee. There are different types of reinsurance contracts used for reinsurance. An insurer can multiply the reinsurance and reinsurance process to create a portfolio whose claims are covered by premiums and capital income generated by the company. The essential elements of the transfer agreement are: the transfer agreement does not need to be concluded in writing, but it is advisable to read S. Botha/Fick 1995 (2) SA 720 (A) where it has been established that „a simple consensus is sufficient to induce a transfer“. The assignment is a bilateral legal act by which the Cedent transfers its rights to the transfer member. The assignment can be conceived as a safe assignment or assignment. In the event of a safe assignment, the assignor transfers his right of action on a debt owed to him, said principal, to the custodian of the assignment, as a guarantee of the debt that the buyer owes to the ceding, so-called guaranteed debts.