We all have duties that, if we don’t fulfil them, can end in fines or jail time. Learn the types of legal obligations and their consequences.
Everyone has a number of legal obligations to follow in their professional and personal lives. On top of this, signing legal contracts could lead to further duties. In this post, we’ll outline how legal obligations work and when you need to follow them.
What Is a Legal Obligation?
Legal obligations are law-based duties. If someone fails to uphold them, they could be subject to harsh penalties. This could be a fine or even jail time.
To an extent, the laws we all follow every day are a legal obligation. These massively vary from one state to another. On a smaller scale, this generally follows the law of obligations.
Types of Legal Obligation
Different areas of law deal with different obligations. The type of obligation will affect the penalty for not complying. Here are the five main categories you should be aware of:
- Contractual obligations: If you sign a legal document, you need to hold up your end of the bargain. This could, for example, be an obligation to pay rent monthly.
- Tortious obligations: Tort law deals with civil wrongs which hurt another person. If your negligence injures them, for example, they have a right to compensation.
- Statutory obligations: Most legal obligations come from basic laws and statutes. These could take effect if you fail to pay taxes or create an unsafe work environment.
- Fiduciary obligations: If you fail to act on somebody else’s behalf, this could leave you liable. For example, a trustee has a duty to manage their trust responsibly.
- Criminal obligations: We all have a legal duty to not commit crimes. These are perhaps the most serious obligations and almost always carry the harshest penalties.
Navigating Your Legal Obligations
The law is always changing. Your obligations today may not be the same as tomorrow. In effect, you have an additional duty to keep an eye on new regulations. Federal and state law are often in conflict; this means you have to be familiar with both.
In the context of a contract, always read it at least twice before signing. This lets you understand your key legal responsibilities. For example, a housing contract may outline the grace period for failing to pay rent. You can always negotiate contracts to change your obligations if necessary.
If you do run into a tort or contract dispute, you can still resolve this. Even a sincere apology and mediation can go a long way.
If you need to seek legal advice, this is always an option. They can help you before entering into a contract. On this note, you can also look into free online contract templates. These offer a fair, legally binding starting point for any agreement.
Who Enforces Legal Obligations?
There are a number of legal mechanisms that take care of these obligations. In many cases, it’s the domain of the court system.
Contract disputes are typically for small claims court — especially if they owe you money under $25,000. Beyond this, criminal courts naturally prosecute crimes. Family courts will contend with alimony payments and similar responsibilities.
Government agencies, such as the IRS and EPA, enforce statutory duties. These organizations have the power to directly fine a person or business violating their rules. Some legal disputes go through alternative dispute resolution. This is specifically to save anyone from going to court.
The Consequences of Breaking Legal Obligations
As outlined above, breaching an obligation could lead to fines or jail time. For a contract, it could even void any of the benefits you’d receive. For example, violating a non-disclosure clause may (and likely will) end with your employer firing you.
A court might even serve you with either a prohibitory or mandatory injunction. The former bans you from taking a certain action. The latter, meanwhile, makes it a new obligation. Breaking this could lead to serious fines.
People can also lose their assets. For example, if they attained them via criminal means. On the other hand, they could be collateral for unpaid debts. Every obligation you have will come with a fitting penalty if you break it.
When Can You Breach an Obligation?
However, there are situations where violating your legal duty isn’t an offence. For example, war or natural disasters could stop somebody from fulfilling a contractual obligation. Under force majeure, this doesn’t carry a penalty.
Some obligations are simply unreasonable. If this is the case, the whole statute or contract may end up under review.
The other party might also waive the right to enforce their contract. They might be willing to let it go, even if just this once. It’s even possible the signer lacked mental capacity when agreeing.
Conclusion
We all face legal obligations — and legal contracts are responsible for many of these. If you set up a contract for someone, consider the appropriate penalty for not seeing it through. An online template will usually set this out for you.
