Persons Liable to Pay and Entitled to Enforce
Lesson 7: Persons Liable to Pay and Entitled to Enforce
2. Persons Liable and Entitled
The debtor, or solvens, is solely obligated to pay, either directly or through a representative. Voluntary representation requires the debtor’s authorization (Art. 1713).
Payment by a third party is permissible, even if not obligated, provided the third party is entitled to pay (Arts. 1158 & 1159).
In strictly personal obligations, only the debtor is authorized to pay (Art. 1161).
a) Payment by the Debtor
Capacity to pay, as outlined in Article 1160.1, requires free disposal of the asset and the ability to alienate. Lacking this capacity renders the payment voidable (Art. 1303).
Free availability of the asset is essential for valid payment. Transferring ownership of another’s property is generally invalid, with exceptions like acquisition of movable property (Art. 464) and property acquired under Article 34 of the Mortgage Law.
The asset may also be subject to encumbrances, even if owned by the debtor.
For obligations involving minors, payment validity depends on the nature of the benefit.
Article 1160.2 states that if an incapacitated debtor pays with cash or fungible goods, recourse exists against the creditor who spent or used them in good faith.
b) Payment by a Third Party
This occurs when the debtor or representative is absent, as covered by Articles 1158 & 1159. A third party can make a valid and effective payment, though not obligated, except for strictly personal obligations.
Article 1158 generally allows third-party payment, satisfying the creditor and potentially granting the third party the right to claim the credit. The payment must adhere to the obligation’s terms. However, different scenarios exist.
Doctrine suggests a third party might have an interest, such as guaranteeing debt compliance. Regardless of interest, the debtor’s attitude towards the third-party payment is crucial, categorized as follows:
- Debtor initiates payment through a representative (previously discussed).
- Third party initiates and notifies the debtor, obtaining consent.
- Third party pays without notifying the debtor:
Article 1158.1 addresses this. If the debtor doesn’t object (recovery action for the full debt), they either consent (subrogation action) or remain indifferent (recovery action). For partial benefit (repetition action), the third party can only claim the amount benefiting the debtor.
The third party has a right of reimbursement. The creditor is satisfied, the obligation extinguished. However, the debtor’s debt remains, creating a new legal relationship granting the third party a recovery action against the debtor.
- Debtor opposes the third party’s intention to pay:
Article 1158.3 states that if payment is against the debtor’s will, the creditor’s interest is satisfied, and the third party has a right of recourse.
A new legal relationship arises, granting the third party credit rights. However, due to the debtor’s objection, the third party can only claim the amount by which the debtor benefited from the payment, preventing unjust enrichment.
Regarding Articles 1159 & 1210, third-party payment with the debtor’s consent or acquiescence leads to the third party’s subrogation. Subrogation action arises when the third party pays without debtor objection.
Subrogation, as defined in Article 1210 and related to Article 1159, arises in these cases. The creditor is replaced, but their credit rights transfer to the paying third party. The obligation remains, placing the third party in the debtor’s position, with identical consequences. Substitution occurs as stipulated in Article 1210.
Of the three actions, subrogation offers the greatest benefit to the third party.