CESSION OF GOODS

3 definitions found across Law Mind sources

CESSION OF GOODSAuthored
The Law Mind • 986 words
Definition
Cession of goods is the formal surrender by a debtor of all his property to his creditors upon finding himself unable to pay his debts. It is a voluntary act — the debtor relinquishes his entire estate in exchange for relief from personal liability, transferring assets to creditors for distribution rather than facing coercive collection or imprisonment. The concept operates as a precursor to, and historical analog of, modern bankruptcy and insolvency proceedings: the debtor initiates relief by yielding everything he owns rather than waiting for creditors to levy execution. The surrender extinguishes the debtor's personal obligation to the extent of the property surrendered; it does not automatically discharge the underlying debt in the modern bankruptcy sense but traditionally shielded the debtor from imprisonment for debt. ---
Common Confusion
Cession of goods should not be confused with assignment for the benefit of creditors, which is a common-law device still in active use. Both involve a debtor voluntarily transferring property to satisfy creditor claims, but cession of goods is a civil-law institution rooted in Roman and French law, historically tied to immunity from imprisonment for debt, and operative by judicial proceeding. Assignment for the benefit of creditors is a common-law contractual arrangement made outside of court. Researchers encountering cession of goods in American sources will almost always be in a civil-law jurisdiction context — most prominently Louisiana — or reading pre-twentieth-century materials from a period when imprisonment for debt was a live concern. Cession of goods is also distinct from modern Chapter 7 bankruptcy, which provides an automatic stay, a trustee-administered estate, and a statutory discharge. Cession was neither automatic in its relief nor universal in its discharge effect. ---
Why It Matters in Research
This term is primarily a civil-law survival in American legal literature. Its principal American home is Louisiana, where it was codified in the Louisiana Civil Code (art. 2170 in the nineteenth-century editions cited by both Black's editions). Researchers working in Louisiana legal history, pre-bankruptcy-reform insolvency law, or comparative civil-law contexts will encounter it regularly; researchers working in common-law jurisdictions will encounter it almost exclusively in historical materials or comparative discussions. Several research traps warrant attention: First, temporal context is critical. Cession of goods had practical force in an era when creditors could imprison debtors for nonpayment. The doctrine's promise of personal immunity was its chief value. After imprisonment for debt was abolished — a process completed across most American jurisdictions by the mid-nineteenth century — cession of goods lost much of its distinctive function and was progressively displaced by statutory insolvency and then federal bankruptcy law. A source discussing cession of goods as a live remedy almost certainly predates this transition, or is a Louisiana source. Second, both Black's editions cite Louisiana Civil Code art. 2170. Researchers should be aware that Louisiana Civil Code article numbering has been revised across successive redactions (1808, 1825, 1870, and the modern code). The article number cited in Black's corresponds to the 1870 Code. Tracing the provision forward requires attention to renumbering. Third, the term appears in treatises on conflict of laws and international private law, where courts sometimes had to decide whether a cession of goods effected in one jurisdiction (particularly a French or Spanish civil-law system) extinguished personal liability enforceable in a common-law forum. These choice-of-law questions generated a modest body of older case law that uses the term in a comparative rather than domestic sense. Fourth, researchers using this term as a search string in historical corpus sources should run parallel searches for "surrender of property," "voluntary surrender to creditors," and "cessio bonorum" — the Latin form from which cession of goods derives — as historical writers used all of these interchangeably. ---
Historical Dictionary Support
Both Black's first and second editions define the term identically, word for word, and both anchor their definitions to Louisiana Civil Code art. 2170. This near-verbatim repetition across editions signals that the term was treated as settled, stable, and jurisdictionally bounded — Black's was recording a doctrine of fixed civil-law provenance rather than tracking evolving common-law usage. What the historical dictionary entries do not address is the doctrine's operational mechanics: the role of the court in receiving the cession, the process for distributing surrendered property among creditors, the effect on secured versus unsecured creditors, or the precise scope of the personal immunity conferred. For those details, researchers must go beyond the dictionary entries to the Louisiana Civil Code itself, to commentators on that code (including the work of Louisiana jurists who drew on French civilian sources), and to the French doctrinal tradition the Louisiana provisions were adapted from. Pothier's treatise on obligations and Domat's civil law in its natural order are the upstream civilian sources most directly relevant. Neither edition of Black's addresses the relationship between cession of goods and the federal bankruptcy acts that were periodically in force during the nineteenth century. That gap is significant: when federal bankruptcy law was operative, it preempted state insolvency remedies to varying degrees, and the interaction between federal bankruptcy and Louisiana's cession procedure was a source of genuine legal complexity that the dictionary entries do not flag. ---
Jurisdictional Note
Cession of goods as a functioning legal remedy is essentially a Louisiana doctrine in the American context, derived from the French civil law tradition. Other states may reference the concept historically or in conflict-of-laws analysis, but it has no operative common-law analog and no statutory basis outside civil-law jurisdictions. Researchers in common-law states should treat any encounter with this term as a signal that a civil-law source, a historical source, or a comparative law discussion is in play. ---
Related Terms
Cessio bonorum (Latin form; Roman law origin) Assignment for the benefit of creditors Insolvency Bankruptcy Discharge of debt Voluntary surrender Debtor relief Civil Code of Louisiana Imprisonment for debt Composition with creditors
CESSION OF GOODSmain
Black's Law Dictionary • 1891
The surrender of property; the relinquishment that a debt- or makes of all his property to his creditors, when he finds himself unable to pay his debts. Civil Code La. art. 2170.
CESSION OF GOODSmain
Black's Law Dictionary (2nd Ed.) • 1910
The surrender of property; the relinquishment that a debtor makes of all his property to his creditors, when he finds himself unable to pay his debts. Civil Code Ln. art. 2170.

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