Chapter 21. The concept and parties to the obligation.
Article 307. The concept of the obligation and the grounds for its occurrence.
1. By virtue of an obligation, one person (debtor) is obliged to perform a certain action in favor of another person (creditor), such as: transfer property, do work, pay money, etc., or refrain from certain action, and the creditor has the right to demand from the debtor of his duties.
2. Obligations arise from a contract, as a result of causing harm and from other grounds specified in this Code.
Article 308. Parties obligations.
1. One or at the same time several persons may participate in the obligation as each of its parties - a creditor or a debtor.
The invalidity of the creditor’s claims to one of the persons participating in the obligation on the debtor’s side, as well as the expiration of the limitation period on the demand to such a person, do not in themselves affect his claims to the rest of these persons.
2. If each of the parties to the contract is obligated in favor of the other party, it is considered to be the debtor of the other party in what it is obliged to do in its favor, and at the same time its creditor in that it has the right to demand from it.
3. Obligation does not create obligations for persons not participating in it as parties (for third parties).
In cases provided for by law, other legal acts or by agreement of the parties, the obligation may create rights for third parties with respect to one or both parties of the obligation.
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