Receiving Debt Repayment on Someone's Behalf: If the Debtor is Known to Have the Means to Pay, is the Person Receiving the Repayment Still Obligated to Pay?
Payment on Behalf of a Debtor: If the Debtor is Known to Have Funds to Pay, Does the Party Making the Payment Still Have to Pay?
Article 335 of the Civil Code 2015 provides for guarantees as follows:
A guarantee is an arrangement where a third party (hereinafter referred to as the guarantor) commits to the creditor (hereinafter referred to as the guarantee acceptor) that they will fulfill the obligation on behalf of the obligor (hereinafter referred to as the guaranteed party) in the event the obligor, upon the due date, fails to perform or performs the obligation incorrectly.
The parties may agree that the guarantor is only required to fulfill the obligation on behalf of the guaranteed party in cases where the guaranteed party is incapable of performing the guaranteed obligation.
Accordingly, in the aforementioned case, the act of paying on behalf is considered a guarantee according to the legal provisions. If it is known that the debtor has sufficient funds to pay, the party making the payment on behalf will not have to pay further if there is a prior agreement between the parties. If there is no such agreement, the party making the payment on behalf still has to pay according to the previous commitment.
Is the Party Making the Payment on Behalf of the Debtor Entitled to Compensation?
Article 337 of the Civil Code 2015 provides for compensation as follows:
The guarantor is entitled to compensation if there is an agreement between the guarantor and the guaranteed party.
Thus, the party making the payment on behalf will receive compensation if there is an agreement between the debtor and the party making the payment on this issue.
Sincerely!
