Meaning of Legally Obligated to Pay

Whenever you breach a contract, you are legally liable for damages. This can be calculated in several ways, depending on the case and the state in which you live. Let`s say you say to your neighbour, « I`ll pay you $50 if you mow my lawn. » The neighbor mows your lawn, and you never pay for it. You have broken a contract and your neighbour is entitled to compensation for his work. As in the cases described above, your damages may be punitive or punitive, depending on what the court awards. But what exactly is legal liability? This is when you are legally responsible for someone else`s financial loss. This liability can arise from: Legal liability means that you pay a financial amount to compensate for any fault on your part, whether intentional or accidental. But when does this change from a possibility to a legally binding payment obligation? It depends on the case. Whether you settle the case or take it to court, you are legally liable once the judge approves an amount. In criminal law, it is called « guilty, » but in the civilian world, it is simply liability. The airline sought to deny liability under its $10 million directors` liability insurance policy because the insured was not legally required to pay the settlement amounts in question. The carrier argued that since the settlement agreement required entities other than the insured – including the paying agent – to pay on behalf of the insured, the insured had never paid or was legally required to pay.

The insured argued that the question of whether he had actually paid was irrelevant to a liability policy, which requires the insurer to pay if the insured is « legally bound to pay », unlike a compensation policy, under which the insurer is only required to reimburse the insured for amounts paid out of pocket. In order to prove that he had entered into the necessary legal obligation to pay, the insured referred to the wording of the settlement agreement, according to which the insured was jointly and severally liable for the settlement payment, although the agreement instructed the defendant`s paying agent to make the actual payment. There is no doubt that it can be very costly to be held legally liable for damage caused to others. Fees can add up not only because of the amount you have to pay the person, but also because of the legal fees to argue your case. Insurance can help protect you from intentional and unintentional torts and cover attorneys` fees, damages, and even punitive damages. This question probably sounds silly. Obviously, a contract is a legal document signed by both parties and agrees to exchange services for money, right? Not necessarily. In fact, the definition of a contract is much broader. Contracts can be oral or written, and both are legally enforceable. Although it is easier to prove a written contract, from a legal point of view, an oral contract is just as good as a written contract. Sometimes even better, because it is clear that all parties knew all the terms of the agreement.

OBLIGATION. In its general and broadest sense, obligation is synonymous with duty. In a more technical sense, it is a commitment that requires us to pay or do something that respects the laws and customs of the country where the commitment is made. Right. Inst. 1. 3, T. 14. The term obligation also refers to the document or writing with which the contract is attested.

And in another sense, an obligation still exists, although the civil obligation is a loan that contains a penalty, with a condition for the payment of money, the fulfillment of clauses or other; It differs from an invoice, which is usually without penalty or condition, although it may be mandatory. Co. Litt. 172. It is also defined as an act in which a man undertakes to do something under penalty of penalty. Com. Dig. Commitment, A. The word obligation in its most technical sense, ex vi termini, imports a sealed document. 2 pp. and R. 502; 6 Vern.

40; 1 Black. 241; Harp. R. 434; 2 Porter, age 19; 1 bald head. 129. See 1 Bell`s Com. b. 3, p. 1, c. 1, page 293; Bouv. Inst.

Index, h.t. 2. Obligations are divided into imperfect commitments and perfect obligations. 3. Imperfect obligations are those which do not bind us to man, and for which we are responsible only to God; like charity or gratitude. In this sense, an obligation is a simple duty. Poth. If. Art. Prel. No. 1.

4. A perfect commitment is one that gives the other the right to demand of us, to give him something or not to do something. These obligations are either natural, moral or civil. 5. A natural or moral obligation is an obligation which cannot be performed by action, but which binds the party who takes it according to his conscience and natural justice. For example, if the action is time-barred, a natural obligation expires. 5 binn. 573. Although natural obligations cannot be fulfilled by measures, they have the following effect: 1.