Concept of creditor / Concept of debtor / Creditor vs debtor relations / How we can help you
Concept of creditor
A creditor is a person (natural or legal) who has the right to obtain from another person (natural or legal) the fulfilment of a certain obligation, regardless of its type or nature (e.g. to receive a product ordered, to receive a sum of money, to not disclose certain confidential information, to receive certain documents and/or information, to have the deficiencies of a purchased good remedied, to be compensated for certain damage caused).
The creditor is entitled to the exact, timely and complete fulfilment of all obligations incumbent on his debtor.
Otherwise, the creditor has a number of legal remedies at his disposal to enforce his rights (e.g. the right to sue his debtor, the right to claim damages from the debtor, the right to initiate enforcement proceedings, the right to terminate or rescind the contract, the right to refer the matter to the competent authorities, etc.).
For more details on foreclosing on a debtor please visit the Foreclosure section.
The notion of debtor
The debtor is a person (natural or legal) who is bound to perform a certain obligation towards another person (natural or legal) regardless of its object or nature (e.g. to hand over a certain movable or immovable property, to conclude a certain type of contract, to pay interest and/or commissions, to repay the credit granted, to vacate a commercial space, not to carry out acts of unfair competition, to work in the interest of the creditor, to account for actions taken, etc.).
The debtor is obliged to perform all his obligations towards the creditor, otherwise he may face a series of consequences (e.g. civil, administrative or criminal sanctions, payment of damages, payment of court costs, etc.).
Creditor vs debtor relations
Any relationship between a creditor and a debtor must be based on a legal relationship generated by a specific legal situation, such as:
- conclude a contract;
- failure to respect a person’s rights;
- violation of a prohibition imposed by law;
- failure to comply with certain obligations imposed by law.
For more information on concluding and negotiating contracts, please go to the section Drafting and negotiating contracts.
Regardless of the source of the legal relationship, the law regulates in detail the rights and obligations of both parties, the creditor and the debtor respectively.
In certain situations, the rights and obligations of the parties are governed primarily by the provisions of the contract concluded by them and only subsidiarily by law.
In this respect, a number of issues are regulated concerning:
- which is the legal way in which the parties can conduct a dialogue and/or transmit documents and/or information;
- which clauses are prohibited in certain contracts (e.g. unfair terms);
- which clauses the law requires in all contracts;
- which are the ways in which a debtor can be compelled to fulfil its obligations;
- which are the ways in which a creditor can be forced to receive what is due to him;
- which is the period of time within which the parties may request the assistance of the state bodies (e.g. limitation period);
- which courts or arbitral tribunals are competent to settle disputes between the parties;
- which law is applicable to the parties;
- what risks parties expose themselves to when they exercise their rights improperly;
- which are the legal requirements for acting only in good faith;
- which legal remedies either party may have recourse to in order to protect its rights and legitimate interests.
How we can help you
Our lawyers can provide you with legal advice, as well as legal assistance or representation before any person (natural or legal), as well as before any court or arbitration tribunal in order to protect your rights and interests, either as a creditor or as a debtor.
Additional information on creditor vs debtor relationships