Warning
Info
Warning
Info
Simple English definitions for legal terms
substitute obligation
Read a random definition: psychological father
A quick definition of substitute obligation:
A substitute obligation is when someone has a duty to do something, but then that duty is replaced by a new duty. This can happen when two parties agree to change the terms of their original agreement. For example, if someone owes money to another person, they might agree to pay it back in smaller installments instead of all at once. The new obligation to pay in installments would be a substitute obligation for the original obligation to pay the full amount at once.A more thorough explanation:
Definition: A substitute obligation is a legal duty that replaces an extinguished obligation through novation. Novation is a process where a new obligation replaces an old one, and the parties involved agree to the change.
Example: A borrower owes a lender $10,000. The borrower and lender agree to replace the old obligation with a new one, where the borrower owes $8,000 instead. The new obligation is a substitute obligation that replaces the old one.
This example illustrates how a substitute obligation can replace an old obligation through novation. The borrower and lender agreed to the change, and the new obligation takes the place of the old one.
substitute information in lieu of indictment | substitute specification