In the Contract Law of P. R. China Article 73 describes that if the obligor is indolent in exercising its due creditor's right, thus damaging the interests of the obligee, the obligee may request the people's court for subrogation in its own name, exc...
In the Contract Law of P. R. China Article 73 describes that if the obligor is indolent in exercising its due creditor's right, thus damaging the interests of the obligee, the obligee may request the people's court for subrogation in its own name, except that the creditor's right exclusively belongs to the obligor. The subrogation shall be exercised within the scope of the creditor's right of the obligee. The necessary expenses caused to the obligee by exercising subrogation shall be borne by the obligor, which means china also regulates the rule of creditor's subrogation in different ways.
In chinese supreme court case, they promulgate the Supreme People's Court's Interpretations of Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (part One). This complements the system of creditor's subrogation and the obligatory right according to article 11 to article 22.
First of all, there are several obligatory rights in one such legal act, One such obligatory right has numerous legal interpretation, but, for chinese case, the pupose of obligatory right would be the purpose of payments.
Secondly, due to Contract Law of P. R. China article 73-1. it regulates the how to act the creditor's subrogation.
Last of all. refer to the affection of obligee's subrogation, even though china doesn't possess regulation on the creditor's subrogation; however, according to article 20, the creditor's subrogation can be approved at second hand.
There are several differences between another countries' creditor's subrogation system and chinese creditor's subrogation system. Due to the fact that china now have good trade relationship between Korea. It is important to look for actual significance of security transactions with clean credits.