ro fr
universul juridic magazin

The substantive conditions of resolution under the new Civil Code

The creditor of the outstanding obligation might claim resolution on account of several possible reasons. The most important is usually the fact that it overrules to make do with a benefit substantially different from that to which it was entitled under the contract (enforcement by equivalent instead of enforcement in kind) and prefers returning to the previous state than performing the agreement in such circumstances. Then, as it is configured under the current civil law, resolution is a faster remedy than, for example, enforcement by equivalent. This is because, in most cases, resolution does not require the intervention of the Court, nor prosecution and forced liquidation of the debtor’s assets, both of which are notoriously time-consuming. Thirdly, the creditor might prefer resolution because the damage that accompany this remedy added to the refund of benefits may be, in value, stronger than the alternative of enforcement by equivalent which consists in the difference between the amount of compensation paid by the debtor and the amount of own benefits that the creditor is bound to execute. This is due to the fact that any damages accompanying resolution are not the same as damages – enforcement by equivalent.