A Party Who Owes a Duty of Performance Under a Contract

question 72

Multiple Choice

A party who owes a duty of performance under a contract is called the ________.

• A) obligor
• B) assignor
• C) assignee
• D) obligee

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Definitions:

Primarily Liable

The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.

Secondarily Liable

Refers to a party who is indirectly responsible for a debt or obligation, where primary liability lies with another party, but the secondary party may be called upon to fulfill the obligation if the primary fails to do so.

Collateral

Assets that are pledged as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay the loan as agreed.

Primarily Liable

Refers to the party who holds the initial or most significant responsibility for fulfilling an obligation or debt.