On The System Of Solvency By The Third Person

Debt repayment is beneficial to settlement of disputes.In addition to repayment by the debtor,debts can also be repaid by the third party for the debtor.The latter one is generally called subrogation by the academic circles.Subrogation system unlocks "the chain of law"that debts only can be repaid by debtors to creditors.There is no specific provision about subrogation in current civil laws of China,but provisions about debt repayment,especially legal bases of settlement of debts in chain in judicial practice,can be found in such laws and regulations as General Principles of Civil Law,Contract Law and Insurance Law.However,it is still disputed whether debt repayment by the third party is a right or an obligation,whether the third party can exceed scope of debts or obtain reliefs and whether the third party can repay debts to the creditor's creditor.Compared with appointed subrogation,statutory subrogation is of greater significance on study and whether the third party is interested in debt repayment has a greater impact on subrogation.The author has made a long-term study of cases about farmer workers' difficulty in requiring wage payment in the field of real estate construction.The author believes subrogation system was gradually formed through reserve legal thinking of debtor's subrogation and under consideration of general practice or conventional conditions.The author believes:first,the third party may repay debts for debtors,unless otherwise stated by laws or subrogation not allowed due to nature of debts;second,debtors or creditors shall not resist subrogation by the uninterested third party;third,after subrogation by the third party,such third party will be entitled to the creditor's rights to the extent of repayment.In case of repayment in excess of the limit,the third party may exercise right of subrogation against the debtor if related legal provisions are available or the debtor is in fault.