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PROVISIONS, CONTINGENT LIABILITIES AND ASSETS
Legal obligations
• This category of obligations means that another party
has the right to summons the entity to perform.
• Such obligations are applicable, for example, when
warranties are given to customers, when such result
from litigation and when self-insurance is applied, and
in the case of onerous contracts.
• The essential element in such cases is therefore an
obligation that can be enforced by law.
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