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The use of emptio venditio for the purpose of suretyship

Even more interesting are the cases where the Roman lawyers used consensual contracts for the purpose of suretyship. Thus, for instance, the late Republican jurists already seem to have devised a transaction, by means of which a result very similar to fideiussio could be achieved, but which avoided certain of its disadvantages, especially litis consumptio, and also all the inconveniences relating to the oral formality of stipulation.

The creditor would ask his debtor to mandate a third party (Seius) to buy his claim. Normally, the purchase price which Seius had to pay was less than the amount of the debt which was the object of the transaction. Thus, the creditor could claim the purchase price from Seius (not the full amount of his claim against the debtor; that was the disadvantage of this construction) in case the debtor fell insolvent or was not able to pay for any other reason. Once Seius had paid the purchase price, he (Seius) could try to recover his expenses from the debtor (on the basis of his actio mandati contraria). A transaction of this type had been concluded in the much-disputed fragment Ofilius/Ulp. D. 44, 4, 4, 6:

"Quod si is, cui pecunia debcatur, cum debitore decidit et nomen eius vendidit Seio, cui debitor mandaverat, ut nomen emeret, deque ea re emptor stipulatus est, deinde creditor earn pecuniam retinet, quam per iudicem abstulit, an emptor ex stipulatu possit experiri? et Ofilius putat, si venditor nominus paratus non sit reddere, quantum ab emptore acceperit, non nocituram exceptionem doli mail: et puto sententiam Ofilii veram."[734] [735] [736]

Here, the debtor had agreed to mandate Seius to buy the creditor's claim as part of a settlement ("decidit" ) with his creditor (who, in turn, might have granted indulgence; the text does not inform us about the creditor's concession). The purchase of the claim had been accompanied by a stipulation, according to which (i.a.) the creditor had promised to hand over to Seius whatever he might receive under his claim from the debtor.

The creditor thus had a choice: he could either sue his debtor and then, if unsuccessful, proceed against Seius, or he could claim the purchase price from Seius immediately. This is what he seems to have done in the present instance. However, later on, and against all expectations, he received the full debt from the debtor. It is obvious that under these circumstances he could not be allowed to keep both sums. The question is whether he now had to hand over to Seius the full amount he had received from his debtor or whether he could keep the amount by which the debt exceeded the purchase price. According to Ofilius, the creditor could meet Seius' action arising from the stipulation with an exceptio doli, if he was prepared to pay back as much as he had received from him (Seius). In other words: Seius was not meant to benefit from the transaction; it would not have been in accordance with what the parties had intended (namely a form of suretyship) if Seius had been able to claim the full sum of the debt which the creditor had been able to recover. Should he have tried to do that, his behaviour would have been classified as fraudulent, i.e. the creditor could have raised the exceptio doli.

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Source: Zimmermann R.. The Law of Obligations. Roman Foundations of the Civilian Tradition. Juta & Co, Ltd,1992. — 1241 p.. 1992

More on the topic The use of emptio venditio for the purpose of suretyship:

  1. Emptio Venditio
  2. Emptio-Venditio (Sale)
  3. PAR T 11 Emptio venditio I
  4. CHAPTER 9 Emptio venditio II
  5. CHAPTER 10 Emptio venditio III
  6. Demarcating the areas of emptio venditio and locatio conductio
  7. Emptio rei speratae and emptio spei
  8. SURETYSHIP
  9. Suretyship
  10. Identifying the purpose