contractual obligation

An obligation arising from or due to a contract agreed upon by two or more parties.

The following items are tagged contractual obligation.

What to Do Before the Deal Breaks Down

Posted by & filed under Dealmaking.

Whenever one side fails to meet its contractual obligations, renegotiation is more likely to succeed if the parties have a strong relationship. Ideally, the aggrieved party will value long-term relations more than potential gains from a claim for breach of contract. For example, a bank will be more willing to renegotiate a loan with a delinquent debtor when the prospect of future business with the debtor is likely. Bondholders of the same debtor, on the other hand, will generally be more resistant to renegotiation, as they tend to lack opportunities for a profitable future business relationship.

To Avoid Destructive Competition, Take the Pledge

Posted by & filed under Conflict Resolution.

It was shaping up to be one of the most expensive Senate races in U.S. history. By this January, Republican Scott Brown and Democrat Elizabeth Warren of Massachusetts each had raised millions in their contest for Brown’s U.S. Senate seat, and third-party groups were spending even more on negative ads.

Both candidates had publicly tried to distance themselves from the so-called super PACs and other big spenders. On January 23, Brown and Warren put their money where their mouths were: they signed a “People’s Pledge” designed to end the influence of outside spending in the campaign.