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Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

Commitment

n. 1. An agreement to do something in the future, esp. to assume a financial obligation <the shipper had a firm commitment. 2. The act of entrusting or giving in charge <commitment of money to the bank>. 3. The act of confining a person in a prison, mental hospital, or other institution <commitment of the felon to prison >. 4. The order directing an officer to take a person to a penal or mental institution; MITTIMUS <the judge signed the commitment after ruling that it was in the best interest of the troubled teen>.

civil commitment

See COMMITMENT.

commitment fee

An amount paid to a lender by a potential borrower for the lender's promise to lend money at a stipulated rate and within a specified time. Commitment fees are common in real estate transactions. See LOAN COMMITMENT.

commitment letter

A lender's written offer to grant a mortgage loan. ( The letter generally outlines the loan amount, the interest rate, and other terms.

commitment warrant

See warrant of commitment.

firm-commitment underwriting

Underwriting in which the underwriter agrees to buy all the shares to be issued and remain financially responsible for any securities not purchased. ( The underwriter, or underwriting group, buys the securities from the issuer and resells them as principal. In this type of underwriting, securities that cannot be sold to the public are owned by the underwriter, and the issuer is paid for those securities as well as the others.

loan commitment

A lender's binding promise to a borrower to lend a specified amount of money at a certain interest rate, usu. within a specified period and for a specified purpose (such as buying real estate). See MORTGAGE COMMITMENT.

mortgage commitment

A lender's written agreement with a borrower stating the terms on which it will lend money for the purchase of specified real property, usu. with a time limitation.

standby commitment

An arrangement between an underwriter and an issuer of securities whereby the underwriter agrees, for a fee, to buy any unsold shares remaining after the public offering. - Also termed standby underwriting agreement.

warrant of commitment

A warrant committing a person to custody. - Also termed commitment warrant.