Obligee Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Obligee, written in plain English, along with examples of how it is used.
What is Obligee?
n.In an obligation,a person or an entity bound by legal agreement to receive or owe, from another person is called an obligee
History and Meaning of Obligee
The term "obligee" is commonly used in contractual law, referring to the party receiving an obligation from another party. This obligation is typically enforced by a legal agreement, and the obligee is entitled to a specific performance or remedy from the obligor if they fail to fulfill their obligation. The term "obligee" comes from the Latin term "obligare," which means "to bind."
Examples of Obligee
- In a mortgage agreement, the lender is typically the obligee, as they are entitled to receive regular payments from the borrower.
- In a construction contract, the owner of the building project might be the obligee, entitled to the finished structure from the contractor.
- In an insurance policy, the policyholder might be considered the obligee, as they are entitled to receive compensation in the event of a covered loss.
- In a surety bond, the obligee is the party that requires the bond from the principal, who is typically the contractor or service provider.
- In an intellectual property license agreement, the licensee may be the obligee, entitled to certain rights or restrictions regarding the use of the licensed property.
Legal Terms Similar to Obligee
- Obligation - refers to the legal duty or responsibility that one party owes to another under an agreement.
- Obligor - refers to the party who owes an obligation to another party.
- Beneficiary - refers to the party entitled to receive the benefits of a contractual or legal agreement, which can include financial compensation or performance of a specific obligation.