Contractual Undertaking

Definition

Contractual Undertaking. A commitment, defined in a Contract, in which one Party to that Contract undertakes to do something or to deliver something or make some payment, to the other Party.

It is often the Principal to the Contract which makes the commitment, however for Transaction contracts, each sides makes a reciprocal commitment to the other. Parties to specific Commitments may be shown where this clarifies the model, else it is simply identified as being a commitment. Orginally REA "Commitment" but separated in order to cover cashflow feature comitments in some options; commitments in Loan contracts (interest and principal repayment) and so on.

Disclaimer

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.