Last Updated on June 28, 2021 by LawEuro
German Civil Code (BGB) German law
Division 7
More than one obligor and obligee
Section 420
Divisible performance
If more than one person owes divisible performance or if more than one person may demand divisible performance, then in case of doubt each obligor is only obliged to render an equal proportion and each obligee is only entitled to an equal proportion.
Section 421
Joint and several debtors
If more than one person owes performance in such a way that each is obliged to effect the entire performance, but the obligee is only entitled to demand the performance once (joint and several debtors), the obligee may at his discretion demand full or part performance from each of the obligors. Until the entire performance has been effected all obligors remain obliged.
Section 422
Effect of performance
(1) Performance by a joint and several debtor is also effective for the other obligors. The same applies to performance in lieu of performance of contract, to deposit and to set-off.
(2) A claim to which a joint and several debtor is entitled may not be set off by the other obligors.
Section 423
Effect of forgiveness
Forgiveness agreed between the obligee and a joint and several debtor is also effective for the other obligors if the parties to the contract intended to terminate the whole obligation.
Section 424
Effect of default by the obligee
The default of the obligee in relation to a joint and several debtor is also effective for the other obligors.
Section 425
Effect of other facts
(1) Facts other than those cited in sections 422 to 424 are only effective, unless the obligation leads to a different conclusion, for and against the joint and several debtor personally affected by them.
(2) This applies in particular, without limitation, to notice of termination, to default, to fault, to impossibility of performance in the person of a joint and several debtor, to limitation and to the new beginning, suspension and suspension of expiry of a period of limitation, to the merger of the claim with the debt and to a final and absolute judgment.
Section 426
Duty to adjust advancements, passing of claim
(1) The joint and several debtors are obliged in equal proportions in relation to one another unless otherwise determined. If the contribution attributable to a joint and several debtor cannot be obtained from him, the shortfall is to be borne by the other obligors obliged to adjust advancements.
(2) To the extent that a joint and several debtor satisfies the obligee and may demand adjustment of advancements from the other obligors, the claim of the obligee against the other obligors passes to him. The passing of ownership may not be asserted to the disadvantage of the creditor.
Section 427
Joint contractual duty
If more than one person jointly binds himself by contract to render divisible performance then, in case of doubt, they are liable as joint and several debtors.
Section 428
Joint and several creditors
If more than one person is entitled to demand performance in such a way that each may demand the entire performance but the obligor is only obliged to effect the performance once (joint and several creditors), the obligor may at his discretion effect performance to each of the obligees. This also applies if one of the obligees has already sued for performance.
Section 429
Effect of changes
(1) The default of a joint and several creditor is also effective against the other obligees.
(2) If claim and debt are combined in the person of a joint and several creditor, the rights of the other obligees against the obligor expire.
(3) Apart from this, the provisions of sections 422, 423 and 425 apply with the necessary modifications. In particular, without limitation, if a joint and several creditor transfers his claim to another party, the rights of the other obligees are unaffected.
Section 430
Duty of the joint and several creditors to adjust advancements
The joint and several creditors are entitled in equal proportions in relation to each other unless otherwise specified.
Section 431
More than one obligor of indivisible performance
If more than one person owes indivisible performance, they are liable as joint and several debtors.
Section 432
More than one obligee of indivisible performance
(1) If more than one person is to demand indivisible performance, then to the extent that they are not joint and several creditors, the obligor may only effect performance to all of them jointly and each obligee may only demand performance for all of them. Each obligee may demand that the obligor deposit the thing owed for all obligees or, if it is not suitable for deposit, that it be surrendered to a court-appointed depositary.
(2) Apart from this, a fact only relating to the person of one of the obligees has no effect for and against the other obligees.
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