Definition of Obligation:
Accounting: Duty to make future payment that is incurred as soon as a purchase order is placed, encumbers a certain sum of money, and is called obligation incurred.
An obligation in finance is the responsibility to meet the terms of a contract. If an obligation is not met, the legal system often provides recourse for the injured party.
An act or course of action to which a person is morally or legally bound; a duty or commitment.
Financial obligations represent any outstanding debts or regular payments that you must make. If you owe or will owe money to anybody, that is one of your financial obligations. Almost any form of money represents a financial obligation—coins, bank notes, or bonds are all promises that you will be credited with the accepted value of the item. Most formal financial obligations, like mortgages, student loans or scheduled service payments, are set down in written contracts signed by both parties. Brokers performing short selling and put options are dealing with obligations.
General: Bond of moral duty (whether of necessity or of ones own choosing) that ties two or more parties together.
Legal: Liability or duty to do something or refrain from doing something under the terms of a contract, such as the obligation of a borrower (the obligor) to pay back the lender (the obligee) under the terms of the loan agreement. Obligations usually involve a penalty for non-fulfillment.
Synonyms of Obligation
Duty, Commitment, Responsibility, Moral imperative, Accountability, Accounts payable, Accounts receivable, Act of grace, Act of kindness, Affair, Agreement, Allegiance, Amount due, Appreciation, Appreciativeness, Aptitude, Aptness, Arrearage, Assigned task, Attempt, Bad debts, Benefaction, Benefit, Benevolence, Benignity, Bill, Bills, Blessing, Bond, Borrowing, Boundary condition, Bounden duty, Burden, Business, Call, Call of duty, Catch, Cause, Chance, Charge, Charges, Chits, Clause, Coaction, Commitment, Committal, Compulsatory, Compulsion, Compulsiveness, Compulsoriness, Compulsory, Condition, Constraint, Contingency, Contract, Courtesy, Covenant, Deal, Debt, Dedication, Deference, Demand, Devoir, Devotion, Donnee, Due, Dues, Duress, Duties and responsibilities, Duty, Effort, Enforcement, Engagement, Enterprise, Escalator clause, Escape clause, Escape hatch, Ethics, Eventuality, Favor, Fealty, Financial commitment, Fine print, Floating debt, Forcing, Funded debt, Given, Good deed, Good offices, Good turn, Grace, Gratefulness, Gratitude, Grounds, Homage, Imperative, Imperious, Indebtedness, Indebtment, Inevitability, Irresistibility, Joker, Kicker, Kind deed, Kind offices, Kindly act, Kindness, Labor of love, Liability, Liableness, Likelihood, Likeliness, Limiting condition, Line of duty, Loyalty, Mandatedness, Mandatoriness, Maturity, Mercy, Mission, Mitzvah, Must, National debt, Necessariness, Necessitation, Necessitude, Necessity, Need, Obligatoriness, Obligatory, Obligement, Office, Onus, Operation, Ought, Outstanding debt, Parameter, Part, Place, Plan, Pledge, Possibility, Preengagement, Prerequisite, Probability, Program, Project, Promise, Proneness, Proposition, Provision, Provisions, Proviso, Public debt, Recognizance, Required, Requirement, Requisite, Respect, Responsibility, Restraint, Right, Saving clause, Score, Self-imposed duty, Sense of obligation, Service, Sine qua non, Small print, Specification, Stipulation, String, Task, Terms, Thankfulness, Trust, Turn, Ultimatum, Uncollectibles, Understanding, Undertaking, Unfulfilled pledge, Venture, Verbal agreement, Weakness, Whereas, Work
How to use Obligation in a sentence?
- Parents have a legal and moral obligation to do everything they can to make sure their children are properly taken care of.
- Money is also an obligation, such as coins and bank notes.
- I have an obligation to look after her.
- Going to my wifes family reunion is an obligation I have to do, but since it makes her happy I suppose there are worse things in life.
- Failure to meet obligations is often met with punishment, such as imprisonment or fines.
- Obligations are usually considered financial responsibilities, often in the form of a contract, such as a mortgage or auto loan.
- As a wife and mother, I have an obligation to my husband and my son to take care of them and to provide them with love and care.
- For budgeting purposes, obligations are important to understand and manage. The Financial Obligation Ratio published by the Fed is a good benchmark for household budgeting.
Meaning of Obligation & Obligation Definition