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Explanation of Article 607

Explanation of Article 607

The article clarified the effect of fulfilling the guaranteed debt by someone other than the debtor or guarantor; if another person fulfills the guaranteed debt, the guarantee is terminated. This is because fulfilling the debt leads to the termination of the guaranteed debt, as the guarantee is dependent on the guaranteed debt. The guarantee follows the existence and non-existence of the guaranteed debt, as stated in Article (604).

This ruling is included in the first paragraph of this article, indicating that the guarantor guarantees the debt, not the person of the debtor. If another person fulfills the debt, the guarantee is terminated. This is because the guarantee is an ancillary contract that does not stand on its own and only terminates with the termination of the guaranteed debt. If the debt still exists in the debtor's liability, the guarantee does not terminate.

The second paragraph clarified that if the fulfillment of the guaranteed debt is by someone other than the debtor or guarantor, but this person fulfills the debt for the debtor, the guarantee does not terminate. This is because the debt still exists in the debtor's liability, as the guarantee is an ancillary contract that does not stand on its own and only terminates with the termination of the guaranteed debt. If the debt still exists in the debtor's liability, the guarantee does not terminate.

The article indicated that this ruling is not of public order; thus, it is permissible to agree otherwise.

Article 607

An insurance contract shall be subject to the legal provisions related thereto.