Contractual Economic Commitment

Definition

Contractual Economic Commitment. Some Commitment, made as part of a transaction (economic) agreement, which has contractual standing.

In REA, transactions may be modeled with or without contractual standing, for example transactions between departments within an organization. For all transactions which are between distinct legal persons or entities, this Contractual Economic Commitment represents the type of commitment which is in force. In an economic transaction there are always two of these, corresponding to the two sides of the transaction (e.g. delivery and payment, or payment of two separate swap streams).

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This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.