Legal Definitions - bifactoral obligation

A bifactoral obligation describes a legal duty or commitment that is dependent upon, or composed of, two distinct and essential elements or conditions. For this obligation to be fully established, enforceable, or discharged, both of these specified factors must typically be present or satisfied.

• A construction contract might stipulate that a homeowner's obligation to make the final payment to a builder is a bifactoral obligation. This payment becomes due only if (1) the building passes all required municipal safety inspections and (2) the builder provides a lien waiver from all subcontractors. If only one of these conditions is met, the homeowner's obligation for the final payment is not yet fully triggered, as both distinct factors must be satisfied.

• In certain employment agreements, an employer's obligation to pay a specific bonus might be structured as a bifactoral obligation. The bonus is payable only if (1) the employee achieves a particular sales target within the fiscal year and (2) the company as a whole meets its annual profit goals. Both the individual's performance and the company's overall financial success are necessary factors for the bonus obligation to arise.

• Consider a specific type of product warranty. A manufacturer's obligation to repair or replace a defective item could be a bifactoral obligation, requiring that (1) the product exhibits a manufacturing defect and (2) the consumer has registered the product within a specified timeframe after purchase. If the defect is due to user error, or if the product was never registered, the manufacturer's obligation under that specific warranty might not apply because both factors are not present.