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 ?
If one considers issues such as control, right of substitution and mutuality of obligation, one must ask who really decides what work is undertaken, when, and under whose control.
First among these is that there was mutuality of obligation in Katz; there was agreement between the parties that an enforceable contract had been formed.
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. Specifically, the appraisal clause provided that "if there is an appraisal, Montpelier will still retain its right to deny the claim" The court interpreted this language to mean that Montpelier may still object to liability, but cannot object to the amount assessed by the appraisal process.
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.
* Mutuality of obligation: Is there an obligation on the employer to provide work and an obligation on the individual to accept that work?
The core argument for extending constitutional protections to nonresident aliens appeals to the idea of mutuality of obligation: aliens cannot have duties to respect U.S.
"In the case of the Kent paperboy, an employment tribunal ruled that a contract of employment did not exist, because there was no 'mutuality of obligation' between the paperboy and the newsagent.
There was no 'mutuality of obligation' as E was not obliged to place children with W, she had no obligation to accept placements and they could be terminated without notice.
The public witness provided by that willing mutuality of obligation lies close to what St.