What does obligee mean?
An obligee is a person who has the legal right to receive money, property, or some other performance from someone who has promised to provide it. The term is used especially in contracts, finance, and securities law, including bonds and other instruments of debt. For example, the holder of a bond may be named as its obligee and become entitled to principal and interest under the terms of the bond. The word is formal and comparatively uncommon outside legal or financial contexts; in general speech, beneficiary is often more natural. It is important to distinguish an obligee from an obligor: the obligee receives or benefits from the obligation, while the obligor is bound to perform it. The term can also refer to the entity entitled to enforce an obligation rather than merely receive its direct benefits.
nounA person who is entitled to receive payment or the performance of a duty under a legal obligation, especially a contract, bond, or other financial instrument.
- A person legally entitled to payment or performance under an obligation, such as a contract, bond, or other financial instrument.
"The bondholder was named as the obligee and therefore was entitled to receive the principal and interest when the bond matured."
"The company notified the obligee that the payment would be made on the following business day."
"In the transaction, the investor was the obligee and the issuer was responsible for repaying the investment."
The plural is used when referring to more than one person entitled to receive payment or performance under legal obligations.
"The notices were sent to all named obligees."
An obligee is the person who gets the promise; an obligor is the person who makes it.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does obligee come from?
The word derives from Latin obligare, meaning “to bind” or “to oblige,” through the legal terminology associated with being bound to perform an obligation. The ending -ee indicates a person to whom an obligation is owed, as in payee and lessee. Related English words include oblige, obligate, obligation, and obligor, all of which reflect the same Latin root.
How obligee is actually used
This is primarily a legal and financial term. It is less common than beneficiary in general usage and is especially associated with bonds and other formal obligations.
Easily confused with obligee
An obligee is entitled to receive the benefit of an obligation, whereas an obligor is the person bound to perform or pay it.