The creditor's right of subrogation refers to the fact that if the debtor neglects to exercise its due creditor's rights and causes damage to the creditor, the creditor may request the people's court to subrogate the debtor's creditor's rights in its own name, except that the creditor's rights are exclusive to the debtor itself.
The creditor's right of revocation refers to the fact that if the debtor waives its due creditor's rights or transfers the property free of charge, causing damage to the creditor, the creditor may request the people's court to revoke the debtor's act.
The difference between the creditor's right of subrogation and the right of avoidance:
1. The exercise of the right of subrogation is to prevent the debtor's property from being unduly reduced;The right of avoidance is exercised to restore the debtor's property.
2. The statute of limitations for subrogation must be exercised within three years after the expiration of the period for the performance of the creditor's rights, and the provisions on the suspension and interruption of the statute of limitations may applyThe right of revocation shall be exercised within one year from the date on which the creditor knows or should have known the reason for revocation, and if the right of revocation is not exercised within five years from the date of occurrence of the act of entering the debt, the right of revocation shall be extinguished.
Relevant bilingual regulations:
Article 73 of the Contract Law:
If the debtor neglects to exercise its due creditor's rights, causing damage to the creditor, the creditor may request the people's court to subrogate the debtor's creditor's rights in its own name, except that the creditor's rights are exclusive to the debtor.
The scope of the exercise of the right of subrogation is limited to the creditor's claim. The necessary expenses for the creditor to exercise the right of subrogation shall be borne by the debtor. where the obligor is remiss in exercising its due creditor's right, thereby harming the obligee's interests, the obligee may petition the people's court for subrogation in its own name,except that the creditor's right exclusively belongs to the obligor.
the extent to which the subrogation rights can be exercised is limited to the obligee's rights. the expenses necessary for the obligee to exercise such subrogation rights shall be borne by the obligor.
Article 74 of the Contract Law:
If the debtor waives its due creditor's rights or transfers its property free of charge, causing damage to the creditor, the creditor may request the people's court to revoke the debtor's act. If the debtor transfers property at an obviously unreasonable low price, causing damage to the creditor, and the transferee is aware of the situation, the creditor may also request the people's court to revoke the debtor's act.
The scope of the exercise of the right of avoidance is limited to the creditor's claim. The necessary expenses for the creditor to exercise the right of avoidance shall be borne by the debtor. where the obligor waives its creditor's right against a third party that is due or assigns its property without reward, thereby harming the obligee's interests, the obligee may petition the people's court for cancellation of the obligor's act. where the obligor assigns its property at a low price which is manifestly unreasonable, thereby harming the obligee's interests, and the assignee is aware of the situation, the obligee may also petition the people's court for cancellation of the obligor's act.
the extent to which the right to cancel can be exercised is limited to the rights of the obligee. the expenses necessary for the obligee to exercise the right to cancel shall be borne by the obligor.
Article 75 of the Contract Law:
The right of avoidance shall be exercised within one year from the date on which the creditor knows or ought to know the reasons for avoidance. If the right of avoidance is not exercised within five years from the date of the debtor's act, the right of avoidance shall be extinguished.
the right to cancel shall be exercised within one year form the date the obligee knows or should h**e known of the matter for cancellation. such right to cancel shall lapse if the obligee fails to exercise such rights within five years from the date of the occurrence of such act.
Refer to bilingual example sentences:
questions of contract law not dealt with in these principles such as consumer protection, incapacity, authority of an agent, set-off, assignment of other rights than intellectual property rights, legal subrogation, multitude of debtors and compensation between them as well as obligations arising from pre-contractual relationships shall be governed by the law applicable by virtue of the rules of private international law of the forum state.
Contract law issues not provided for in these General Principles, such as consumer protection, lack of capacity, authority of the person, set-off, assignment of other rights not intellectual property rights, subrogation, majority of debtors and their internal claims, and debts arising from pre-contractual relations, shall be governed by the private international law of the country of the forum.
to provide an initial response to the law society of hong kong (law soc)’s submission dated 27 june 2003, in particular paragraph 4 of the submission on “subrogation rights”, as soon as practicable so as to enable law soc to comment on the administration’s initial response before the tenth bills committee meeting on 17 july 2003.
To provide a preliminary response to the submission of the Law Society of Hong Kong ("the Law Society") dated 27 June 2003 as soon as practicable, in particular paragraph 4 of the submission relating to "subrogation", so that the Law Society may comment on the Administration's preliminary response before the tenth meeting of the Bills Committee on 17 July 2003.