Research on "Legitimate Interests" in Third-Party Performance

DOI: https://doi.org/10.62517/jel.202514305

Author(s)

Ruohe Pei

Affiliation(s)

School of Law, China Jiliang University, Hangzhou, Zhejiang, China *Corresponding Author

Abstract

Article 524 of the Civil Code establishes the system of third-party performance, with the core requirement being the legitimate interests of the third party. However, the definition of "legitimate interests" in this provision is somewhat vague, leading to debates in academic circles over whether to interpret it broadly or strictly. From a comparative law perspective, different countries and regions have varying scopes of application for "legitimate interests." China may appropriately expand the scope in its interpretation but must strictly control it. A strict interpretation of "legitimate interest" has multiple implications: it allows third parties to bypass the principle of contractual relativity, provides strong protection for third parties after they perform on behalf of others, and helps distinguish this system from others like unjust enrichment, preventing confusion in its application. Therefore, the definition of "legitimate interest" should consider multiple factors comprehensively to achieve a balance of interests, ensuring the stable operation of the market economy and the accuracy of legal application.

Keywords

Third-Party Performance; Legitimate Interests; Relativity of Obligations; Assignment of Statutory Claims; Breaking through the Relativity of Debt; Unjust Enrichment; Right to Compensation

References

[1] Liang Huixing. Draft Proposal for the Chinese Civil Code with Reasons (General Provisions on Creditors' Rights). Beijing: China Legal Publishing House, 2006: 94-97. [2] Wagatsuma Hideo. Revised General Theory of Obligations. Translated by Wang Yan. Beijing: China Legal Publishing House, 2008:220 [3] Huang Wei. Interpretation of the Contract Section of the Civil Code of the People's Republic of China. Beijing: China Legal Publishing House, 2020: 214. [4] Supreme People's Court Civil Code Implementation Work Leading Group. Understanding and Application of the Contract Section of the Civil Code of the People's Republic of China (Part One). Beijing: People's Court Press, 2020: 421, 422 [5] Dirk Roescheldes. General Theory of German Debt Law. Translated by Shen Xiaojun and Zhang Jinhai. Beijing: China Renmin University Press, 2014: 98–99 [6] Swiss Law of Obligations. Translated by Dai Yongsheng. Beijing: China University of Political Science and Law Press, 2016: 36. [7] Wang Liming: "On the Relativity of Contracts," published in China Law Review, Issue 4, 1996 [8] Wang Liming: "On Third-Party Performance: A Study Centered on Article 524 of the Civil Code," published in Law Journal, Issue 8, 2021 [9] Lu Jiahao: "The Theory of Interpretation of the Third-Party Subrogation System in the Civil Code," published in Journal of East China University of Political Science and Law, No. 3, 2021. [10] Ran Keping: "The Third-Party Payment System in the Context of the Compilation of the Civil Code," published in Law and Business Research, No. 2, 2015.