Obligation

The legal responsibility to meet the terms of a contract. If the obligation is not met there is often recourse for the other party to the contract.

In the financial world, obligation refers to an outstanding debt that a party must still repay - and if they do not pay, they default on the debt. For example, when the U.S. government issues Treasury bonds it has the obligation to pay back the principal to the debt holders.


Investment dictionary. . 2012.

Synonyms:

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  • Obligation — Obligation …   Deutsch Wörterbuch

  • obligation — [ ɔbligasjɔ̃ ] n. f. • 1235; lat. jurid. obligatio, de obligare 1 ♦ Dr. Lien de droit en vertu duquel une personne peut être contrainte de donner, de faire ou de ne pas faire qqch. (⇒ créancier, 1. débiteur). Obligation alimentaire. (lat. in… …   Encyclopédie Universelle

  • obligation — ob·li·ga·tion /ˌä blə gā shən/ n 1: a promise, acknowledgment, or agreement (as a contract) that binds one to a specific performance (as payment); also: the binding power of such an agreement or indication held that the amendment did not… …   Law dictionary

  • Obligation — • Defined in the Institutes of Justinian as a legal bond which by a legal necessity binds us to do something according to the laws of our State Catholic Encyclopedia. Kevin Knight. 2006. Obligation     Obligation …   Catholic encyclopedia

  • obligation — Obligation. s. f. Acte public par lequel on s oblige pardevant Notaire de payer certaine somme. Une obligation de dix mille francs. la nouvelle Ordonnance deffend l obligation par corps. obligation solidaire &c. il m en a passé obligation… …   Dictionnaire de l'Académie française

  • obligation — Obligation, f. acut. Obligatio, Tabulae. Obligation de comparoir en justice, Vadimonium. Une solennité d obligation, ou alienation où il failloit entre autres choses cinq tesmoins, Nexus, siue Nexum. Avoir quelque obligation envers autruy sous… …   Thresor de la langue françoyse

  • Obligation — Ob li*ga tion, n. [F. obligation. L. obligatio. See {Oblige}.] 1. The act of obligating. [1913 Webster] 2. That which obligates or constrains; the binding power of a promise, contract, oath, or vow, or of law; that which constitutes legal or… …   The Collaborative International Dictionary of English

  • obligation — 1 Obligation, duty are comparable when they denote what a person is bound to do or refrain from doing or for the performañce or nonperformance of which he is held responsible. In ordinary usage obligation typically implies immediate constraint… …   New Dictionary of Synonyms

  • Obligation — (von lateinisch obligare anbinden, verpflichten) steht für: Obligation (Recht), die Haftung einer Person für ein Schuldverhältnis beziehungsweise das Schuldverhältnis als solches Wirtschaft und Finanzen: verzinsliches Wertpapier, eine… …   Deutsch Wikipedia

  • obligation — (n.) c.1300, from O.Fr. obligation (early 13c.), from L. obligationem (nom. obligatio) an engaging or pledging, lit. a binding (but rarely used in this sense), noun of action from pp. stem of obligare (see OBLIGE (Cf. oblige)). The notion is of… …   Etymology dictionary

  • obligation — [äb΄li gā′shən] n. [ME obligacioun < OFr obligation < L obligatio] 1. an obligating or being obligated 2. a binding contract, promise, moral responsibility, etc. 3. a duty imposed legally or socially; thing that one is bound to do by… …   English World dictionary

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