Obligee

What Does Obligee Mean?

An obligee is a person or entity for whom someone else is required to fulfill an obligation, as specified in a contract.

The obligee is also referred to as the promisee.

Insuranceopedia Explains Obligee

For every obligee, there is a corresponding obligor, the individual or entity that is obligated to fulfill a promise or duty as outlined in the contract.

The obligee can be a bank, a credit company, or a person who secures a surety bond to ensure that another party will complete an agreed-upon task. Insurance policyholders are also considered obligees, as their insurance contracts stipulate that they are required to pay premiums to the insurance company.