A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.

Name: A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

A primary obligation is an unconditional commitment to pay, not contingent on another party's failure to pay. The described scenario is a secondary obligation or guarantee.

A Primary Obligation Is Created When a Party Agrees to Pay