Obligation
In one sentence
A legal duty that a party must perform under a contract or law.
Plain English
An obligation is a promise or duty that someone is legally required to fulfill. In a contract, each party has obligations—things they must do or refrain from doing. If you break an obligation, the other party can sue you for damages or seek other legal remedies.
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Example
When you sign a lease, you have the obligation to pay rent on time each month. The landlord has the obligation to maintain the property in habitable condition.
Used in a sentence
“Each party's main obligation under the employment contract is to perform their job duties in exchange for payment.”
Related terms
Consideration
Something of value exchanged by each party to make a contract binding.
Performance
The act of doing what a contract requires, such as delivering goods or paying money.
Breach
A failure to do what a contract requires, such as not paying or not delivering.
Specific Performance
A court order forcing someone to actually do what they promised in the contract.
Indemnification
A promise to compensate someone for losses, damages, or legal costs they suffer.
Delegation of Duties
Assigning your contractual responsibilities to another person.
Offer
A proposal to enter into a binding agreement on specific terms.
Acceptance
Agreeing to the exact terms of an offer, creating a binding contract.
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.