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Contract & Commercial Law vocabulary · Contract Terms & Clauses

Obligation

Meaning in contract & commercial law, with examples

/ˌɒblɪˈɡeɪʃn/nounCore term

In contract & commercial law, obligation means: A duty that a party must perform under a contract or the law, such as paying the price, delivering goods or keeping information confidential.

In Turkish: yükümlülük, borç, edim

How it is used

Contracts are largely lists of obligations, usually written with 'shall' or 'must'. You perform, fulfil, comply with or breach an obligation. 'Payment obligations' and 'confidentiality obligations' are typical headings.

Example sentences

  1. The seller has fulfilled all its obligations under the agreement.

  2. The confidentiality obligations continue for five years after termination.

Common collocations

  • perform an obligation
  • fulfil an obligation
  • breach an obligation
  • payment obligations
  • contractual obligation
  • clauseA numbered section of a contract that deals with one specific subject, such as payment, confidentiality or termination.
  • liabilityLegal responsibility for something, especially the duty to pay compensation for loss or harm; in accounting, also a debt that a business owes.
  • breach of contractFailure by a party to do what it promised in a contract, for example paying late, delivering faulty goods or not delivering at all.
  • partyA person or organisation that has signed a contract or is directly involved in a legal agreement or dispute.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Contract Terms & Clauses

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This page explains English vocabulary for learners. It is not legal advice.