The foundation of all contractual obligations rests on three elements:
| Scenario | Obligation of Party A | Obligation of Party B | | :--- | :--- | :--- | | Employment contract | Employee: Work 40 hours/week, maintain confidentiality | Employer: Pay biweekly salary, provide safe workplace | | Rental lease | Tenant: Pay rent, keep unit clean, no pets | Landlord: Maintain habitability, fix leaks, respect privacy | | Credit card agreement | Cardholder: Minimum monthly payment | Bank: Extend credit, accurately report payment history | | Software license (SaaS) | User: Pay subscription, not reverse-engineer the code | Provider: Maintain uptime, provide support, secure data | Contractual Obligations
Whether you are drafting a contract or signing one, follow these guidelines to manage your obligations. The foundation of all contractual obligations rests on
For a contract to create binding obligations, it must satisfy: They typically fall into several categories, each with
The objective and subject matter of the agreement must comply with state and federal laws.
Not all obligations are created equal. They typically fall into several categories, each with distinct characteristics.