Earth Sharing | Definition of Lending Subjects in Civil Lending Disputes - [Inheritance of Loan Claims]

01

When one party to a contract dies, the contract is naturally terminated. However, the death of the creditor does not lead to the extinction of the debt. So, if the lender dies, does the heir have the right to claim repayment from the borrower? Please See the following case introduction.

02

Lender's death, heir claims repayment

On January 18 and 23, 2008, the defendant Chen borrowed 100,000 yuan from the plaintiff Liu's husband, Jian, on two separate occasions. On April 18 of the same year, the defendant borrowed another 100,000 yuan from Jian for the third time. For all three loans, the defendant issued separate IOUs to the plaintiff, each stipulating a monthly interest rate of 5%, but without specifying the loan term. On May 30, 2008, the defendant issued a fourth IOU to Jian for 170,000 yuan, without specifying the interest rate or repayment time. On January 9, 2009, the defendant issued a fifth IOU to Jian for 130,000 yuan, with a stipulated loan term of three months. On July 29, 2009, the defendant issued a sixth IOU to Jian for 60,000 yuan, specifying repayment by the end of October. In summary, the defendant borrowed a total of 660,000 yuan from the plaintiff. Later, the defendant repaid 100,000 yuan to the plaintiff, leaving an outstanding principal of 560,000 yuan. After repeated requests for repayment went unanswered, the plaintiff filed a lawsuit with the court on October 9, 2013, demanding repayment of the 560,000 yuan principal and interest.

03

The court ordered the defendant to repay the principal and interest to the plaintiff within three days of the judgment's effectiveness. As Jian's legal heir, the plaintiff has the legal right to inherit this debt. The judgment is based on Articles 76 and 108 of the General Principles of the Civil Law of the People's Republic of China, Articles 205, 206, 207, and 211 of the Contract Law of the People's Republic of China, and Article 144 of the Civil Procedure Law of the People's Republic of China.

04

Does the heir have the right to claim repayment from the borrower?

A debt is an important property right and a significant component of the deceased's estate; in principle, it can be inherited by the heir. The debt, as part of the inheritance, must have existed at the commencement of inheritance. Debts arising after the commencement of inheritance cannot be inherited. Debts arising from contracts, gratuitous acts, unjust enrichment, and torts are all inheritable. Debts arising from property rights violations are inheritable. However, debts with a personal nature, such as a child's claim for support from their parents or a disabled soldier's claim for pension from relevant authorities, are inseparable from the deceased's person and are extinguished upon the deceased's death; they cannot be inherited by the heir.