Debt Law

Debt Law is a special branch of law amidst the branches similar to it and the discipline behind it is that it evaluates the legal relationships involved in debt issues. It is a type of law which regulates the relations in the area of debt and integrates it into law. The concept of debt relationship, in terms of private law, can be defined as a relationship between two parties namely the creditor and the debtor. It explains how a debtor must act against a creditor, what type of behaviour he is expected to express and it is also a type of law which helps the creditor by illustrating what type of behaviour (demanding performance) may be requested from the debtor in order to fulfil the tasks required to solve the debt problems.
Legal transactions and debts arising from contracts:
  • Contracts
  • Torts
  • Unfair acquisitions
  • Fulfilment of Debts
  • Failure of performance of debt payment
  • Lapse of debt
  • Special situations related to debtor - creditor relationship
oncepts in debt law
  • Debt concept
  • Debtor – creditor relationship concept
  • Concept related to legal transactions
  • Contract concepts


​Some terms are explained in brief as listed below:

  • Debtor – creditor relationship: It refers to the amount of loan.
  • Debt concept: this concept interprets the legal relationship and that is the creditor is entitled to claim the required from the debtor, and the debtor isobligated to fulfil the payment of the arisen debt.

​Debtor – creditor relationship is an organization and its main source is the contract. This relationship can take place pre-contract, during the process of the contract when agreeing on terms as well as after the contract is terminated. This relationship also illustrates the right or rights that could be claimed between the debtor and creditor, a set of innovated rights, accessory rights (something extra not necessary rights), arranged/control rights, subsidiary contract liabilities, debts arising after the expiry of first debt, debt burdens and the equitable rights.

  • Rights - Right is the main element of a legal transaction. It also offers its owner with the privilege to challenge the other people within the relationship.
Difference between debt and creditor-debtor relationship
1) In terms of their onsett: the two issues can occur simultaneously or at separate times. Single transaction cases take place during trade like sale of a bread, lease payments, payment dates expected after establishment of the contract so it focuses on the payments; transactions where payment and taxes must be attained on the date promised.
2) Regarding to the scope of the above stated issues, creditor and debtor relationship seldom involves one creditor and single transactions. Generally it comprises of more than one creditor and is observed in multiple transaction issues. The relationship is more comprehensive in terms of the nature of the debt rather than the debt itself.
3) In terms of transfer, only the payment (debt) owed is transferrable. Debtor – creditor relationship can be terminated either by abrogation or by mutual rescission contrary to debt situations. It can also be brought to an end if one of the parties die, is bankrupt or in the event of mental loss. Moreover it can also be terminated when all the debts have been executed.
4) With respect to termination, debtor –creditor relationship ends after the debt ends.