ABSTRACT
CHAPTER I – SPHERE OF APPLICATION AND GENERAL PROVISIONS
1. This Convention governs factoring contracts and assignments of receivables as described in this Chapter.
2. For the purposes of this convention ‘factoring contract’ means a contract concluded between the party (the supplier) and another party (the factor) pursuant to which-
(a) the supplier may or will assign to the factor receivables arising from contracts of sale of goods made between the supplier and its customers (debtors) other than those for the sale of goods bought primarily for their personal, family or household use;
(b) the factor is to perform at least two of the following functions: —finance for the supplier, including loans and advance payments; —maintenance of accounts (ledgering) relating to the receivables; —collection of receivables; —protection against default in payment by debtors;
(c) notice of the assignment of the receivables is to be given to debtors. 3. In this Convention references to ‘goods’ and ‘sale of goods’ shall include
services and the supply of services. 4. For the purposes of this Convention-
(a) a notice in writing need not be signed but must identify the person by whom or in whose name it is given;
(b) ‘notice in writing’ includes, but is not limited to, telegrams, telex and any other telecommunication capable of being reproduced in tangible form;
(c) a notice in writing is given when it is received by the addressee.
