Cessation of an obligation

• execution,

• smart money,

• offset,

• novation,

• forgiving of debt,

• coincidence of the debtor and the creditor in one person,

• impossibility to execute,

• the issue of an act by a state body,

• demise of the citizen,

• liquidation of the legal entity.

• as may be provided by legislation or agreement

Smart Money

• By agreement of the parties, an obligation may be terminated by offering instead of the execution of smart money (payment of money, transfer of assets etc.).

• The amount, the deadlines and the procedure for presenting the smart money shall be established by the parties.

Offset

• An obligation shall be terminated fully or partially by offsetting a similar claim, the deadline for which occurred, or the deadline wherefore is not specified or is defined as time of the claim.

Coincidence of the Debtor and Creditor in One Person

• An obligation shall be terminated by the coincidence of the debtor and creditor in one person.

Novation

• Agreement of the parties to replace the initial obligation which existed between them, by any other obligation between the same persons, which provides for another method of execution (novation).

• Novation shall not be allowed with regard to the obligations to compensate damage caused to life or health, and to pay alimony.

Forgiving Debt

• An obligation shall be terminated by the exemption of the debtor by his creditor from the obligations which rest with him, unless this violates the rights of any other persons with regard to the property of the creditor.