In which situation does legal subrogation take place?

Legal subrogation occurs when one party pays or satisfies a debt or obligation owed by another party, thereby acquiring that party's legal rights and remedies against the original debtor. This typically happens in situations involving sureties or insurance, where the party making the payment (the subrogee) steps into the shoes of the party who received the benefit (the subrogor).

In the context of the scenario, the situation described in the correct choice reflects the essence of legal subrogation: one obligee pays another who has superior rights. By making the payment, the obligee can subsequently pursue recovery from the original party responsible for the debt, allowing them to seek compensation or enforce rights that may not have been directly accessible before the payment was made.

The other choices do not accurately represent situations where legal subrogation would take place. A donation does not involve the transfer of rights or obligations but rather a gift without expectation of recouping costs. A voided contract implies that the parties are released from their obligations without any transfer of rights. Defaulting on a contract, while it may lead to some form of legal action or remedies, does not inherently involve the transfer of rights that characterizes the process of subrogation. Therefore, the correct answer