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SUBSTITUTION OF DEBTOR

Summary/Abstract: Substitution of a party to the obligation – either a debtor or a creditor – means that another person steps into the position of such party, but in a way that the obligation does not change its identity. In Serbian law, in legal relations inter vivos, the creditor may be changed by means of (1) transfer of a contract as a whole; (2) assignment of a claim (cession); and (3) personal subrogation (payment with subrogation), which may be either statutory or based on a contract. The change of the debtor may happen within a wider scheme of (1) transfer of a contract as a whole; and as (2) substitution of a debtor, based on a contract. A contract for substitution of the debtor which is concluded by the creditor and a third party represents an external substitution (la reprise de dette externe). On the other side, if such legal consequence derives from a contract concluded by the debtor and a third party, it should be called an internal substitution (la reprise de dette interne). Substitution of the debtor which completely terminates the obligation of an initial debtor and gives rise to the obligation of the third party, represents a translative (or perfect, or privative) substitution.

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