Performance of Debt on Behalf of Debtor

This paper analyses the general Latvian private law framework and the legal consequences in cases where a third party performs the debt on behalf of the debtor. Historically, the Latvian Civil Law has taken a conservative position on this issue, not recognizing legal subrogation in the event of a debt termination. Although legal subrogation is considered foreign in the Latvian Civil Law (with certain exceptions in the case of recourse by a guarantor), it is recognized in certain Latvian laws. An assessment of Latvian case law reveals a number of judgments, which have addressed this issue, and historically the courts have not recognized legal subrogation. However, recent case law also contains judgments, which may lead to the conclusion that in certain cases there is legal subrogation where a person performs an obligation on behalf of the debtor. Given that there is some uncertainty on this issue, including the legal consequences of a third party performing a debt on the debtor’s behalf without the debtor’s knowledge and against his will, the paper sets out proposals and solutions to be taken to harmonize the approach in similar cases not only in case law but also in legal doctrine.