A bilateral contract is a mutual agreement in which both parties commit to performing an action or refraining from doing something, creating obligations on both sides. This is a common framework in business, employment, and service agreements.
A debtor is an individual or entity that owes money to another party, typically referred to as a creditor. In bankruptcy or similar legal proceedings, a debtor is the subject on whom the actions are primarily focused.
Liable means being legally responsible or obligated for something. It often relates to situations where a person or entity is required to uphold their part of a legal duty or may be subjected to penalties if they fail to do so.
The term 'maker' has distinct meanings depending on the context. Generally, it refers to a producer of a product, such as a car manufacturer. In commercial law, it specifically designates the person who executes a note or endorses it before its delivery to the payee, thereby assuming the obligation to make a payment.
An obligation is a commitment undertaken by a person or entity to adhere to the conditions defined in a contract or to repay a specified debt.
An obligee is a person or entity in whose favor a contractual, legal, or fiscal obligation is established. This party is entitled to receive specific performance or payment as per the conditions outlined in the obligation.
A Security Interest represents a legal claim or right granted to a lender or secured party over the borrower's property (collateral) which secures the payment or performance of an obligation.
