Contractual obligations are the duties that parties agree to fulfill in a contract. A contract is a legally binding agreement between two or more parties, which outlines specific terms and conditions. When individuals or businesses enter into a contract, they are expected to perform their obligations as stated, such as delivering goods, providing services, or making payments. If one party fails to meet their contractual obligations, it can lead to legal consequences, such as lawsuits or financial penalties. Understanding these obligations is essential for ensuring that all parties involved uphold their end of the agreement, fostering trust and accountability in business and personal relationships.