default on obligations

USAGE SUMMARY

The phrase "default on obligations" is correct and usable in written English.
It is typically used in legal or financial contexts to refer to failing to fulfill a duty or responsibility, such as a loan repayment or contractual agreement. Example: "The company faced severe consequences after it was found to have defaulted on its obligations to investors."

✓ Grammatically correct

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

4 human-written examples

Insolvent banks will default on obligations to depositors and other creditors and of course can no longer funnel credit to businesses or consumers.

Columbia University

The crucial point here is that even if they're right about interest payments — which is unclear — the government will (a) still go into default on obligations to vendors, Social Security recipients, and so on (b) be forced into spending cuts so large as to guarantee a recession if the standoff lasts any length of time.

The New York Times

Goldman also detailed $1.1 billion in "credit" exposure to Italy, reflecting the risk that its Italian borrowers and counterparties might default on obligations.

Huffington Post

As I discussed in an earlier column, real leaders don't shut down the government, threaten default on obligations, threaten financial markets and programs for the poor and the most vulnerable -- all over hatred of a constitutional law.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

56 human-written examples

It unfolds like this: Unable to sell half the units in a building, a struggling developer stops paying common charges and defaults on obligations to the lender.

The New York Times

The committee brainstormed ways to help the workers without setting a precedent for Nike's paying out whenever a subcontractor defaulted on obligations to its employees.

Harvard Business Review

In its strict sense, sovereign risk describes governments defaulting on obligations but is used by some to mean any change in taxes, subsidies or regulations that are less favourable for businesses.

The Guardian

Treasury secretary Jack Lew expects to exhaust those measures by 17 October and the congressional budget office expects the nation could start defaulting on obligations by 22 October unless swift action is taken.

The Guardian

Unexim Bank, Russia's fourth-largest private bank by assets, said today that it had won a court order here to block the accounts of Lehman Brothers Holdings, arguing that Lehman defaulted on obligations to it.

The New York Times

If there is no deal by August, the US may start defaulting on obligations.

BBC

On Monday, Infinity World Development, a subsidiary of Dubai World, charged MGM Mirage with defaulting on obligations in connection with a joint venture with Infinity to design, construct and operate a development on the Las Vegas Strip called CityCenter.

Forbes

Expert writing Tips

Best practice

When discussing legal or financial matters, use "default on obligations" to clearly indicate a failure to meet contractual or financial duties. This phrase is widely understood in these contexts.

Common error

Avoid using "default on obligations" when you simply mean a delay in payment or fulfilling a duty. "Default" implies a more serious and likely permanent inability to meet the obligation.

Linguistic Context

The phrase "default on obligations" functions as a verb phrase. Ludwig AI suggests the phrase is typically used to indicate a failure to fulfill a financial or contractual duty. The phrase often appears as the main verb in a sentence, describing an entity's action of failing to meet its responsibilities.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Academia

20%

Formal & Business

10%

Less common in

Science

5%

Wiki

3%

Reference

2%

Ludwig's WRAP-UP

The phrase "default on obligations" is a grammatically correct and usable expression signifying a failure to fulfill financial or contractual duties. Ludwig AI confirms its common use in legal and financial contexts. While there may be misunderstandings between default and delay, using this phrase clearly conveys a serious breach of commitment. Semantically related phrases include "fail to meet obligations", "breach contractual duties", and "be in default". It's most frequently found in news and media and academic sources.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

fail to meet obligations

This alternative is a more general way to express the inability to fulfill duties or responsibilities.

breach contractual duties

This alternative focuses specifically on the violation of duties outlined in a contract.

fail to honor commitments

This alternative emphasizes the broken promise or agreement implied in failing to meet obligations.

be in default

This is a shorter and more direct way of stating the condition of being unable to pay.

become insolvent

This alternative focuses on the state of being unable to pay debts, often leading to defaulting on obligations.

cease payments

This alternative highlights the action of stopping payments, which constitutes a default on obligations.

be unable to pay debts

This alternative clearly states the inability to fulfill financial responsibilities.

not meet financial responsibilities

This alternative is a more formal way to describe the failure to handle financial duties.

violate financial agreements

This alternative focuses on the violation of agreements related to finances.

fail to discharge debts

This alternative is a formal way to express not fulfilling the duty of paying off debts.

FAQs

What does it mean to "default on obligations"?

To "default on obligations" means failing to meet the terms of an agreement, such as not paying back a loan or not fulfilling a contractual duty. It often carries legal and financial consequences.

How to use "default on obligations" in a sentence?

You can use "default on obligations" in a sentence like, "The company faced severe penalties after it "failed to meet obligations" to its creditors."

What are some consequences of "defaulting on obligations"?

Consequences of "defaulting on obligations" can include legal action, damage to credit score, repossession of assets, and difficulty obtaining future loans.

What can I say instead of "default on obligations"?

You can use alternatives like "fail to meet obligations", "breach contractual duties", or "be in default" depending on the specific context.