business contracts..?
Question by mma: business contracts..?
In business contracts, are the obliger (the one who owes duty) and the obligee (the one who is receiving the duty) interchangeable? For example, lets say Alex co. contracts with Bay to build a house for Bay for $ 500,000…Alex is owes Bay a house, so he is the obliger, and Bay is receiving the house, so he is the obligee…On the other hand, Bay owes Alex money, so he is also the obliger…right?
Best answer:
Answer by coragryph
For any given instance of consideration, there is one obligor and one obligee — in other words, for each duty owed, the roles are fixed.
However, given that mutual consideration is required in a contract, each party is an obligor for their duties and obligations, and each party is an obligee (recipient) of what the other party provides.
Your example is correct. Alex is the obligor for the house. Bay is the obligor for the money.
Know better? Leave your own answer in the comments!