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What is the legally bound obligation to pay debts called?
The legal obligation of a business to pay a debt is called an:
Can cash dividend be declared more than profit?
No, a cash dividend cannot be declared in excess of a company's available profits. Dividends are typically paid from retained earnings, which represent the cumulative profits that have not been distributed to shareholders. If a company declares a dividend greater than its profits, it could lead to financial instability and potential legal issues, as it may violate corporate laws or regulations regarding dividend distributions.
If seller accepts check and cashes check for purchase of a house is this binding?
In the United States, all contracts for real property must be in writing to be legal. Different states have other provisions. If the seller cashed a check without any signed paperwork attached, it may not be binding. If the seller cashed the check and there was signed paperwork, and it was legal under the laws of that area, it probably was binding.
What is legal obligation in a contract?
A legal obligation in a contract refers to the responsibilities and duties that each party is bound to fulfill as stipulated in the agreement. This includes performing specific actions, providing goods or services, or refraining from certain behaviors as outlined in the contract. If a party fails to meet these obligations, they may be subject to legal consequences, such as being sued for breach of contract. Essentially, legal obligations ensure that the terms of the contract are enforceable in a court of law.
What is the difference between a corporate guarantee and letter of comfort?
Corporate Guarantee bind under legal obligation in absense of fullfill the commitment of risk/obligation by subsidary company. A comfort letter is an amorphous obligation and is typically given in a situation where a parent company is unwilling to give a guarantee in respect of a subsidiary's liability.
When does a dividend become a company's legal obligation?
A dividend becomes a company's legal obligation once it has been declared by the company's board of directors. This declaration typically occurs during a board meeting where the amount and payment date are specified. Once declared, the company is required to pay the dividend to shareholders on the specified date, and it becomes a liability on the company's financial statements. Prior to declaration, dividends are merely a proposal and not legally binding.
Is proposed dividend a current liability or current asset?
Proposed dividends are considered a current liability. Once a company's board of directors declares a dividend, it becomes a legal obligation for the company to pay that amount to shareholders, typically within the next accounting period. This obligation is recorded on the balance sheet as a liability until the dividend is paid.
What is meant by obligation being a juridical necessity?
Obligation as a juridical necessity refers to a legal duty that requires an individual or entity to act or refrain from acting in a certain way. This necessity is grounded in law, meaning that failure to fulfill the obligation can result in legal consequences, such as penalties or the enforcement of rights. Essentially, it underscores the binding nature of obligations within the legal framework, distinguishing them from mere moral or social duties.
What does obligation?
An obligation is something you are bound by duty to do. It could be a legal obligation arising from a contract, in which a person has promised to do a certain thing as a part of the contract. It could be a moral or ethical obligation which could arise as a result of a promise which is not legally binding, or from a relationship. E.g. "You said you'd visit the sick and elderly after church and you have an obligation to follow through." "I feel that, as a friend, I have an obligation to attend her funeral." "It's your obligation to take care of your brother's widow and children."
What is obligation opinion?
An obligation opinion is a legal opinion provided by counsel regarding a party's ability to fulfill its obligations under a contract or legal agreement. It assesses whether the agreement is valid, binding, and enforceable, considering applicable laws and regulations. Typically, these opinions are used in transactions to reassure involved parties that the contractual obligations can be met without legal impediments.
What are those three weird legal words that sound similar and describe a persons obligations?
The three legal terms you're referring to are "duty," "obligation," and "liability." These words describe a person's responsibilities or commitments under the law. "Duty" often refers to a moral or legal responsibility, "obligation" denotes a binding commitment to act or refrain from acting, and "liability" implies legal responsibility for one's actions, particularly in the context of potential legal consequences.
Final administrative rules do not have binding legal effect?
false! they do have binding legal effects
What is the intention to create legal binding in a Contract?
The intention to create legal binding in a contract refers to the parties' mutual agreement to enter into a legally enforceable obligation. This is established through clear terms, consideration, and mutual consent, indicating that the parties expect their promises to be upheld by law. Without this intention, agreements may be viewed as informal or non-binding, lacking legal recourse in case of breach. Essentially, it ensures that the parties recognize the seriousness of their commitments.
Do men have a legal obligation to pay child support?
Yes, men have a legal obligation to pay child support if they are the biological or legal father of a child. This obligation is typically enforced by family court orders.
Is dividend payable a liability?
Yes, dividends payable is considered a liability on a company's balance sheet. It represents the amount owed to shareholders for declared dividends that have not yet been paid. Once the board of directors declares a dividend, it creates a legal obligation for the company to pay that amount, thus classifying it as a liability until it is settled.
If a promise clearly makes a moral obligation than does the law make it a legal obligation?
Not necessarily. Morals are, by definition, more subjective than the law. You may have a moral obligation to do something for which there is no legal punishment available at all. Maybe you have a moral obligation to give your children presents as your money may permit, but there is no legal obligation to give them more than the necessaries, even if you are filthy rich. In other cases you may have a moral obligation that merely creates a separate and distinct legal obligation. For example, you may have a moral obligation to perform services on a contract, but you cannot be physically forced to actually perform. The only "legal obligation" would be to pay for damages caused by your failure to perform, if any. Therefore, even if there is a legal obligation stemming from such a moral obligation ("you gave your word"), they are not the same obligation.
What is a binding decision?
Bind or binding means to impose one or more legal duties on a person or institution. For example, the parties are bound by the terms of the contract; the courts are bound by precedents. The words to bind or binding are also used to signify that a thing is subject to an obligation, engagement or liability; to indenture; to legally obligate to serve. See below link:
