what is obligation 
an obligation is the responsibility of a party to meet the terms of a contract or agreement if an obligation is not met the legal system often provides recourse for the injured party understanding obligationobligations are the backbone of our economy trusting that a contract will be adhered to helps create a stable healthy society individuals corporations governments banks and institutions any entity that operates within a society must regularly fulfill their obligations or else face punishment financial obligations represent any outstanding debts or regular payments that a party must make for example if you owe or will owe money to anybody that is one of your financial obligations almost any form of payment or financial security represents a financial obligation coins banknotes shares of stock and bonds are all promises or obligations that you will be credited with the accepted value of the item or gain certain rights or privileges by holding it many formal financial obligations like mortgages student loans or scheduled service payments are set down in written contracts signed by both parties and establish a creditor debtor relationship of obligation money can be construed as a financial obligation mandated by the government as legal tender obliging producers or vendors to sell goods in exchange for currency such as coins and banknotes 