Committed: Definition, Example and Related Terms
What is Committed ?
The term 'committed' in a commercial context often refers to a promise or an agreement made by a party in a contract to fulfil certain obligations. When a party is 'committed', it means they have made a legal promise to perform their duties as stated in the contract.
This commitment can be in various forms such as delivering goods on a specific date, making payments, providing services, and more. It's like making a promise to your friend that you will help them with their homework. You are 'committed' to helping them, and they expect you to fulfil this promise.
Example(s)
Scenario Description A company commits to delivering 100 units of a product to another company by a specific date. In this example, the company has made a commitment to deliver a certain quantity of goods within a specified time frame. If they fail to do so, they could be in breach of contract, leading to penalties or legal consequences. A service provider commits to maintaining a certain level of service uptime as part of a service level agreement. Here, the service provider's commitment is to ensure their service stays up and running to the agreed level. If the service provider fails to meet this commitment, they could face penalties as detailed in the agreement.