Contractual Obligation-based Provision

A Contractual Obligation-based Provision is a performance-based contractual provision that stipulates an obligated action that one or more contract parties must fulfill.

• AKA: Obligation Provision.
• Context:
  • It can (typically) cover Obligation Actions, such as: making payments obligations, delivering goods or services obligations, adhering to confidentiality requirements obligations, and providing notice of certain events obligations.
  • It can (often) include Obligation Provision Elements, such as:
    • a Timeline for Performance Element (performance timeline).
    • a Standard of Required Performance Element (performance standard requirement).
    • a Non-Fulfillment Consequence Element (non-fulfilment consequence guarantee).
    • a Performance Guarantee Element (performance guarantee).
    • ...
  • It can range from being an Atomic Obligation Provision to being a Complex Obligation Provision.
  • It can range from being a Single Element Obligation Provision, a Two Element Obligation Provision, to being a Many Element Obligation Provision.
  • It can range from being a General Obligation Provision to being a Contract-Specific Obligation Provision.
  • It can range from being a Unconditional Obligation Provision (where the obligation applies absolutely) to being a Conditional Obligation Provision (where the obligation is triggered only under certain circumstances).
  • It can range from being a Raw Contractual Obligation-based Provision to being an Annotated Contractual Obligation-based Provision.
  • ...
• Example(s):
  • An Unconditional Obligation Provision, without contractual conditions, such as:
    • A Payment Obligation Provision with no contractual condition on a fixed repayment obligation.
  • A Conditional Obligation Provision, with contractual conditions, such as:
    • A Casualty Damage Repair Obligation Provision that is triggered by an accidental damage incident.
  • A Financial Obligation Provision, with a financial obligation, such as:
    • A Payment Obligation Provision with a monthly repayment obligation.
  • A Service and Delivery Obligation Provision, with a service obligation, such as:
    • A Delivery Obligation Provision with a timed delivery obligation.
  • An Information and Confidentiality Obligation Provision, with a confidentiality obligation, such as:
    • A Confidentiality Obligation Provision with a non-disclosure obligation.
  • A Performance and Effort Obligation Provision, with an effort obligation, such as:
    • A Best Efforts Obligation Provision with a joint effort obligation.
  • A Compliance and Regulatory Obligation Provision, with a regulatory obligation, such as:
    • A Regulatory Compliance Obligation Provision with a regulatory adherence obligation.
  • A Safety and Environmental Obligation Provision, with an environmental obligation, such as:
    • A Environmental Compliance Obligation Provision with an environmental standards obligation.
  • A Notification and Reporting Obligation Provision, with a notification obligation, such as:
    • A Damage Notification Obligation Provision with a damage report obligation.
  • ...
  • an Annotated Contractual Obligation-based Provision.
  • ...
• Counter-Example(s):
  • Permission Provisions.
  • Representation and Warranty Provisions.
  • Force Majeure Provisions.
  • Remedy Provisions.
• See: Contract Document Atomic Provision, Contractual Obligation, Breach of Contract, Contract Law, Contract Drafting, Contract Interpretation.

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