Business transactions usually entail financial engagements, commitments and the execution of contracts which in themselves have duties, obligations and liabilities binding the parties. The challenges usually faced by businesses and companies usually cause these corporate entities to source for capital usually in the form of a loan from a finance institution and other interested and willing creditors. As a consequence, a creditor and debtor relationship is established. Two questions however come to mind;

  1. Under what conditions can the creditor recover money loaned to the debtor company in the event of a default to repay the loan?
  2. Under what conditions can orders to deliver or return an object subject to a creditor and debtor transaction be made?

The OHADA Law has gone a long way to reassure creditors by implementing procedure aimed at enabling recovery of debts by potential creditors.

The OHADA Law on simplified recovery procedures has established two types of orders to wit;

  • The traditional order to make payment, and
  • The more innovative order to deliver or to return an object.

The intention of the OHADA Law is that both procedures be simple and inexpensive and should allow a creditor quickly obtain what is due to him so long as there is no serious dispute as to whether the debt or obligation is due.

The conditions for a creditor to seek orders to make payments under the OHADA Law include;

  • The debt should be certain, liquidated and due, and
  • The debt should be a contractual debt or arises out of the issuance or acceptance of any negotiable instrument or of a cheque for which there is sufficient cover.

The conditions to seek orders to deliver or return an object are as follows;

  • The object concerned should be identifiable, tangible and movable, and
  • The applicant should consider that he is owed an obligation to deliver or return this particular object.

The procedure for each of the orders illustrated above is similar before a competent court.

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