Subrogation €“ Legal Form Of Payment A Modality To Discharge The Binding Legal Relationship

By virtue of the principle of celerity that characterizes commercial obligations, the lender or the debtor of the pecuniary obligation may resort to a subrogation for the extinction of the binding legal relationship.The subrogation institution is both within the reach of the creditor and that of the debtor, and each of them may resort to such a payment method if this is in their best interest. As a consequence of the subrogation, the part of the binding legal relationship that resorted to such a method of payment is substituted (replaced) by a third party of the binding legal relationship, which basically takes over the rights and the obligations of the party it replaces. In other words, either of the parties of the binding legal relationship has at hand a legal institution known in the doctrine as being part of the legal forms of payment, through the use of which it can discharge the most costly or interest-bearing financial obligations, known as bearing the name of subrogation. Since the subrogation may be agreed both by the debtor and by the creditor, but it may also be legal, below, we shall only refer to the subrogation agreed by the debtor and to that agreed by the creditor, and the legal subrogation shall be subject to a separate analysis. Thus, in the following, the subrogation institution’s analysis is to be done from the point of view of the comparative law, which concerns the old and the new civil code.