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Civil Law

Explanation of Article 608

Explanation of Article 608

The article refers to the situation where the creditor fulfills the guarantor's right to subrogate the creditor in the real securities owned by the debtor. If the creditor harms the guarantor's rights in subrogation by releasing the debtor from a mortgage, removing the real guarantee, or any other action that harms the guarantor's rights in subrogation, the guarantee is terminated to the extent that the creditor has harmed the guarantor's rights. This is because the guarantor guarantees the debt, not the person of the debtor. If the creditor harms the guarantor's rights in subrogation, the guarantee is terminated to the extent that the creditor has harmed the guarantor's rights. This is because the guarantee is an accessory contract, not independent by itself, and it only terminates with the termination of the guaranteed debt. If the debt still exists in the debtor's liability, the guarantee does not terminate.

This ruling is what the first paragraph of this article contains, and the reason is that the guarantor guarantees the debt, not the person of the debtor. If the creditor harms the guarantor's rights in subrogation, the guarantee is terminated to the extent that the creditor has harmed the guarantor's rights. This is because the guarantee is an accessory contract, not independent by itself, and it 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 harm caused by the creditor to the guarantor's rights in subrogation results in the destruction of the guaranteed debt, the guarantee is completely terminated. This is because the destruction of the guaranteed debt leads to the termination of the guaranteed debt, due to the accessory nature of the guarantee to the guaranteed debt. The guarantee follows the existence and non-existence of the guaranteed debt, and this is what Article (604) has established.

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

Related To

Article 608

  1. The right of ownership confers on the owner of a thing the right to solely use, exploit, and dispose of such thing.

  2. The owner of a thing shall be solely entitled to all its yields, output, and appurtenances, unless a legal provision or a disposition requires otherwise.