Obligatee

An obligatee is a person, organization, or entity to whom an obligation is owed. This obligation can stem from a contract, agreement, law, moral duty, or social convention. The obligatee has the right to expect the performance or fulfillment of the obligation by the obligor (the party with the duty). The nature of the obligation varies widely, encompassing financial payments, providing goods or services, upholding specific standards of conduct, or refraining from certain actions. Legal remedies or consequences may arise if the obligor fails to meet their responsibilities to the obligatee. The obligatee's standing is central to the relationship and enforcement of duties within a contract or agreement. Essentially, the obligatee is the beneficiary of the obligation.

Obligatee meaning with examples

• Under the terms of the loan agreement, the obligatee, which is the lending bank, expects the borrower (the obligor) to make timely monthly payments. The obligatee has the right to pursue legal action if the borrower defaults. The bank relies on this agreement, which is central to its operation, to remain financially stable and continue its services.
• The contract outlined the details for the supply of goods. The obligatee, the retailer, expected the manufacturer (the obligor) to deliver the ordered merchandise by the specified deadline. Failure to meet this would leave the obligatee with limited stock, impacting their sales potential and thus potentially cause financial harm.
• A charitable organization's benefactors (the obligors) have an obligation to donate funds as per their pledges, and the obligatee, the recipients of aid, are depending on those donations. These vulnerable people depend upon the actions of others, and their support provides them with assistance for food and shelter.
• In a lease agreement, the obligatee, the landlord, relies upon the tenant (the obligor) to pay rent and maintain the property. The landlord can take the obligor to court if there's non-compliance, as the landlord is financially dependent on receiving those payments to keep the property in a good condition.
• According to environmental regulations, the public acts as the obligatee. Companies and businesses (the obligors) have the responsibility to protect natural resources from pollution. The public expects the obligor to not cause damage to the environment, and thus, can hold them accountable by law.