Further obligations: Overview, definition, and example
What are further obligations?
Further obligations refer to additional duties, responsibilities, or commitments that one party must fulfill under a contract or agreement beyond the initial obligations set forth in the document. These obligations may arise during the course of performance, following certain events or milestones, or as part of ongoing or post-contractual requirements.
In many contracts, parties may agree to certain further obligations, which could include actions like providing ongoing support, making additional payments, fulfilling regulatory requirements, or meeting specific performance targets. These obligations are often defined clearly within the contract to ensure that each party knows exactly what is expected of them.
Why are further obligations important?
Further obligations are important because they help ensure that the contract is fully executed according to the agreed terms. They provide clarity and structure for how parties must continue to act or deliver once the initial obligations have been met or as new circumstances arise.
These obligations also help prevent disputes by setting clear expectations for what needs to be done after the initial phase of the contract, often ensuring that business relationships continue to operate smoothly over time. In some cases, further obligations are critical for maintaining compliance with regulatory or legal standards.
Understanding further obligations through an example
Imagine a technology company, Tech Solutions Inc., enters into a software development contract with a client. The contract stipulates that Tech Solutions will deliver a fully functioning software program by a certain date. However, the contract also includes further obligations, such as providing software updates and technical support for one year after the product is delivered.
In this example, the further obligations of Tech Solutions Inc. are the ongoing maintenance and support after the initial software delivery. These additional duties are important because they ensure that the client will receive continued service and updates, even after the primary deliverable has been completed.
Example of further obligations in a contract
Here’s an example of a "further obligations" clause in a business contract:
“Following the completion and delivery of the initial software application, the Developer shall provide the Client with further obligations as follows: (i) software updates and bug fixes for a period of one year from the date of delivery; (ii) technical support available during normal business hours for the duration of the support period; and (iii) regular system backups to ensure the security and integrity of the Client’s data.”
Conclusion
Further obligations are a key aspect of contracts that extend beyond the initial commitments, ensuring that both parties continue to meet their responsibilities even after the primary tasks are completed. These obligations can involve a range of activities such as providing maintenance, making additional payments, or complying with regulatory requirements. Understanding further obligations helps both parties clearly define expectations and ensure that business relationships remain effective and compliant throughout the contract term.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.