Long Jun: Debt Preservation System in the Civil Code


Abstract: The “Preservation of Contract” system in the Chapter Five of the Contract Section of the Civil Code applies to the whole field of the debt preservation. The expansion for the objects cope of the creditor's rights of subrogation and revocation meets the practical demands. In the interpretation, “the accessory rights in relation to creditor's rights” in Article 535 cover not only the accessory rights of creditor's rights but the accessory rights of contracts. The simple rules for recovery of creditor's rights for persons with the right of subrogation are stipulated in the first sentence of Article 537. In the second sentence, the recognition of the restrictive rules of warehousing is presented. In Article 542, it is defined that the theoretical constructs of the creditor's right of revocation shall be interpreted as formation of litigation, thus, only the effect of revoking the legal acts occurs, but not the direct effect of the right of claim, and creditors who want to finally solve the problems still need to achieve through the system of subrogation right for creditors, and thereby are applicable to a set of rules in the system of subrogation right. 

Keywords: preservation; right of subrogation; right of revocation; rules of warehousing