Which term refers to a legal entity bound to pay on a contract?

The term that refers to a legal entity bound to pay on a contract is "obligor." An obligor is a party who has a legal duty to fulfill the obligations set forth in a contract, which typically involves making payments or providing services as agreed. This term is fundamental in contract law as it establishes accountability for the terms agreed upon by the parties involved.

In contracts, the obligor is the individual or business that is primarily responsible for executing the terms, such as making payments or delivering goods. Understanding this concept is essential for anyone dealing with contractual agreements, as it clarifies who holds the responsibility for performance.

In contrast, other terms like surety and guarantor generally refer to parties who take on responsibility for someone else’s obligations under specific circumstances, rather than being the primary party responsible for those obligations. A trustee is a person or entity that holds property or assets for the benefit of another, and does not typically have the direct obligation to pay on a contract in the same manner as an obligor does.