Counterobligation

/ˌkaʊntərˌɑːbləˈɡeɪʃən/ noun

Definition

A duty or obligation that arises in response to or as a condition of another obligation, especially in contracts or relationships.

Etymology

From counter- (against) + obligation (from Latin obligare, 'to bind'). A legal and contractual term used in agreements and formal relationships.

Kelly Says

In contracts, when one party has an obligation to pay you, you often have a counterobligation to deliver goods—neither party has to act until the other does, creating mutual binding promises.

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