Secondary obligation | Practical Law

Secondary obligation | Practical Law

Secondary obligation

Secondary obligation

Practical Law ANZ Glossary w-012-2405 (Approx. 2 pages)

Glossary

Secondary obligation

An obligation that arises by operation of law on the breach of a primary obligation. Secondary obligations remain enforceable following termination of the contract. Examples of secondary obligations include the obligation to pay damages for breach of contract and the obligations of a guarantor under a contract of guarantee.