Difference between revisions of "Obligation"
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== Definition == | == Definition == | ||
| − | An '''Obligation''' is a duty or responsibility that an entity has no practical ability to avoid while acting in compliance with applicable rules (e.g. moral imperatives) or law (in which case it is a [[Legal | + | An '''Obligation''' is a duty or responsibility that an entity has no practical ability to avoid while acting in compliance with applicable rules (e.g. moral imperatives) or law (in which case it is a [[Legal Obligation]]. |
* An obligation may be specified in a [[Contract]], in which case it is a [[Contractual Obligation]] | * An obligation may be specified in a [[Contract]], in which case it is a [[Contractual Obligation]] | ||
Latest revision as of 17:55, 6 September 2021
Definition
An Obligation is a duty or responsibility that an entity has no practical ability to avoid while acting in compliance with applicable rules (e.g. moral imperatives) or law (in which case it is a Legal Obligation.
- An obligation may be specified in a Contract, in which case it is a Contractual Obligation
- In financial context an obligation is a Claim by another party that results in monetary amounts owed to that party (or parties). The other party (or parties) could be a Person or a Legal Entity, a group of people or other entities, or society at large.
