Who is referred to as the debtor in contract terms?

In contract terms, the term "debtor" specifically refers to the person who owes money or has an obligation to pay under the contract. This individual has a legal obligation to fulfill the terms agreed upon, typically in the context of a loan, credit, or a seller-buyer relationship.

When a debt is created, the debtor is liable for repayment to the creditor, who is the person or entity to whom the money is owed. This foundational concept plays a crucial role in understanding various types of contracts and the rights and responsibilities of each party involved.

The other options do not accurately represent the meaning of "debtor." The individual who invests money into a contract is typically referred to as an investor or the creditor in many scenarios, while the person holding the contract rights may be either the debtor or creditor depending on the context. Lastly, an individual representing the creditor is not defined as the debtor, as they are acting on behalf of the party that is owed money. Understanding these distinctions is vital for navigating contract law effectively.