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 ?
Employers should be particularly careful where they are giving individuals regular WORK on a regular basis over an extensive period of time, and where there appears to be mutuality of obligation in terms of the offer and acceptance of WORK.
then filed a motion for declaratory judgment, arguing that the appraisal clause was illusory because Montpelier reserved the right to deny their claim, and thus there was no mutuality of obligation.
Citing Buddha's discourse on the asymmetry of power among not only humans but between humans and animals, he argues for a more demanding and expanding mutuality of obligation that would go beyond the limitations of a reciprocity-based self-interested cooperation.
The public witness provided by that willing mutuality of obligation lies close to what St.
for example, the court rejected the defense argument that the plaintiff's continuing to work for the defendant after the arbitration policy went into effect proved mutuality of obligation.
The mutuality of obligation approach presumes that the extension of U.
Although Tyson wanted the case heard in arbitration rather than in open court, the Supreme Court said "an arbitration agreement in contracts they executed with appellees, who are hog farmers, lacks mutuality of obligation and, thus, is unenforceable.
The tribunal considered that mutuality of obligation was lacking between Franks and either company, so it decided that he was employed by neither.