payment obligations
Definition
Payment obligations are the specific amounts of money you are legally required to pay, to whom you must pay them, and when those payments are due under a contract or agreement. Think of them as the financial promises you made in writing that a court could force you to keep if you fail to follow through.
Example
If you sign a lease for your shop, your payment obligations include paying $2,000 in rent on the first of every month for the full length of the lease term.
Watch Out
Missing even one payment can trigger a default under your contract, which may give the other party the right to demand the entire remaining balance all at once.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.