Categorization Of "Legitimate Interests" In Performance Of Third Party

Article 524 of the "Civil Code" is a new addition to the code,which stipulates the system of performance by the third party.And its core element "has a legitimate interest in the performance of the debt",which comes from the interest relationship in traditional civil law and judicial practice outside the territory,has been interpreted by scholars as "obtaining legal interests due to the settlement of debts".However,when this article and related judicial interpretations were issued,there was no further explanation of "legitimate interests",which led to different judgments in judicial practice,and even as a result of the alienation and distortion of the system.It is necessary to return to the right direction in time and give full play to the system’s functions.The first chapter studies the application of Article 524 of the "Civil Code" and the determination of "whether there is a legitimate interest" by the People’s Court in judicial practice,and concludes that there are three problems:First,the determination standard of"legitimate interest" is too broad,leading to the application of a large number of cases that should not be applicable to third-party performance.Second,the judgment of the courts is not uniform,with different attitudes on whether to substantively examine "whether there is a legitimate interest",and different courts make diametrically opposite judgments on the same situation,which damages the credibility of the judiciary.The third is alienation and distortion of the original intention of the system design.Some courts made wrong judgments to force a third party to perform on their behalf,and some courts only used Article 524 as a tool for subsequent recovery without considering the legislative purpose.The second chapter first analyzes the necessity of categorizing the situation of "having legitimate interests".Categorization is necessary for judges to form their inner convictions and carry out sufficient argumentation.Categorization is necessary to standardize discretionary power and limit overly lenient determination.Categorization is necessary to unify judgment standards and improve judicial credibility.Then thinking about how to carry out the categorization.On the basis of examining the legislative cases and judicial practices of the countries of the Anglo-American law system and the civil law system,it is believed that we should focus on several types generally stipulated by various countries,and propose that we should carry out the categorization with judicial interpretation as the main method and guiding cases as the supplementary method.The third chapter focuses on Article 31,paragraph 1,of the judicial interpretation of the Supreme People’s Court(draft for comments),explores the origin of the six situations of"having legitimate interests" clearly listed,and further explains in combination with precedents.Due to the clear rights and obligations in the contract text,courts are able to handle the guarantor’s case quickly.It is necessary to focus on future cases of usufruct owners and legal occupants of secured property.In order to ensure the realization of its mortgage rights,the second-ranked mortgagee has a legitimate interest in fulfilling the debtor’s debts to the first-ranked mortgagee.This case deserves to be listed as a typical case.The performance of the third party who loses legal interests due to the compulsory execution of the debtor’s property must be based on the reality that there is a danger of this loss.The legal representative cannot be considered to have legitimate interests,while the actual controller should be deemed to have legitimate interests based on the natural interpretation,and Article 524 should not apply to the company’s repayment of shareholders’ debts.Where the debtor is a natural person,it shall be limited to close relatives,excluding relatives such as in-laws,uncles and nephews.For situations that are common in practice but not listed,the role of the cover clause should be fully utilized.In subleasing,subcontracting cases and timesensitive emergency cases,a third party can be established to perform on behalf of the staff.The proxy performance of employee wages,taxes,and fines must be based on the independent will of the third party.Substitute performance based on duties and performance must be discussed on a case-by-case basis.And the advance payment of medical expenses,alimony,spousal support,and child support does not constitute the performance of the third party.