Define: Deobligation

UK Accounting Glossary

Definition: Deobligation


Quick Summary of Deobligation


Reducing the obligations on a contract.



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Full Definition of Deobligation


Deobligation is a downward adjustment of the obligations recorded in a contract document.

It is typically caused by factors such as:

  • the termination of part of the project,
  • a reduction in material prices,
  • an under-run of costs, or
  • a correction to recorded amounts.

This is done by cancelling a project, reducing costs, overrunning costs, or correcting the amounts recorded.


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https://payrollheaven.com/define/deobligation/
Modern Language Association (MLA):
Deobligation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 21, 2020 https://payrollheaven.com/define/deobligation/.
Chicago Manual of Style (CMS):
Deobligation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/deobligation/ (accessed: February 21, 2020).
American Psychological Association (APA):
Deobligation. PayrollHeaven.com. Retrieved February 21, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/deobligation/

Definition Sources


Definitions for Deobligation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 8th December 2019.