Please log in first
Read 18 times.
Liked by 2 people.


Related Finance Topics:
Financial Concepts


Contingent Obligation

Back to Finance Glossary | Previous Page

A contingent obligation is a financial instrument whose issuer promises to pay the holder of the instrument if certain events happen.

A guarantee would be a classic example of a contingent obligation. The guarantor has a contingent obligation to pay on a debt if the borrower defaults on that debt. In this case, the default is a the event that triggers the payment.

Take a Quiz! Taking Stock
Math for Accountants
FDIC Failed Bank List
Legal Accounting Authority
Not Down with the Dow

More Quizzes

Latest Articles Related to Contingent Obligation

If you find this information useful, please help us by sharing it with others.


Back to Finance Glossary | Previous Page

This web site is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any securities. The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable.

Your Ad Here