By Charlotte GAUCHON
2 May 2025
Factoring exposes the factor to a major legal risk: the enforceability of defences. This mechanism allows the assigned debtor to raise defences against the factor that could have been raised against the original creditor. This legal reality complicates collection and can compromise the effectiveness of the financing. The principle and limits of the enforceability of exceptions The legal basis of enforceability The principle nemo plus juris ad alium transferre potest quam ipse habet (no one may transfer more rights than he possesses) is the basis of the enforceability of exceptions. The factor, whether subrogated or assignee, acquires the claim with its qualities but also its defects. This principle derives directly from the texts governing the mechanisms for transferring receivables: For subrogation: articles 1346 et seq. of the Civil Code For Dailly assignment: articles L. 313-23 et seq. of the Monetary and Financial Code Case law constantly confirms this principle. The Court of Cassation,...
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