Mutuality of Obligation


Also found in: Financial, Acronyms.

Mutuality of Obligation

The legal principle that provides that unless both parties to a contract are bound to perform, neither party is bound.

References in periodicals archive ?
The tribunal considered that mutuality of obligation was lacking between Franks and either company, so it decided that he was employed by neither.
This meant employers, and those who engaged subcontractors, had to demonstrate there was no mutuality of obligation.