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Obligor Meaning: Definition, Examples, and Translations

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obligor

[əˈblɪɡər ]

Definition

Context #1 | Noun

legal term

A person or entity who is legally bound to fulfill a specific obligation or duty.

Synonyms

debtor, payer, promisor.

Which Synonym Should You Choose?

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Word Description / Examples
obligor

Typically used in legal or financial contexts to refer to a party that is obligated to provide a benefit or payment specified in a contract or agreement.

  • The contract specifies that the obligor must make quarterly payments
debtor

Commonly used in financial contexts to refer to someone who owes money, often in relation to loans or credit. It can also have a slightly negative connotation depending on the situation.

  • The debtor has failed to make the last three payments on the loan
payer

General term used in everyday and financial contexts to refer to someone who makes a payment. It can be used in both personal and business transactions.

  • The payer is responsible for ensuring that the bill is paid on time
promisor

Used mainly in legal or formal contexts to describe a person who makes a promise or commitment to another party.

  • In the contract, the promisor agrees to deliver the goods by the end of the month

Examples of usage

  • The obligor failed to make the required payments on time.
  • The obligor is responsible for meeting the terms of the contract.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Law

  • Obligors are often involved in agreements, such as loans or contracts, where they are responsible for making payments or fulfilling duties.
  • In financial contexts, obligors might be individuals or entities like corporations that borrow funds.

Finance

  • The concept of an obligor is crucial in risk assessment for lenders, as it helps determine creditworthiness.
  • Obligors are often assessed based on their ability to meet payment obligations, which can affect interest rates.

Culture

  • In some cultures, fulfilling one's obligations is a matter of honor, influencing social and family dynamics.
  • Obligors often experience cultural pressure to meet their responsibilities, which can impact personal reputations.

Psychology

  • The psychological burden of being an obligor can lead to stress, especially if the obligations are significant or unmet.
  • People may feel a strong sense of duty related to their role as obligors, impacting their decision-making.

Origin of 'obligor'

Main points about word origin

  • The term comes from the Latin word 'obligare', meaning 'to bind' or 'to tie'.
  • In legal contexts, the term has been used since the early 19th century, reflecting the development of contract law.

The word 'obligor' has its origins in Latin, derived from the word 'obligare' which means 'to bind' or 'to oblige'. It has been used in legal contexts to refer to individuals or entities who are bound by a legal obligation or duty.