What type of obligation is created through an entity’s established patterns of past practices?

The correct answer is constructive obligation because this term refers to obligations that arise from an organization’s established patterns of past practices, policies, or specific terms of a contract, creating an expectation among stakeholders that the entity will fulfill those obligations even though they may not be legally enforceable.

In the case of constructive obligations, the past behavior of the entity creates a sense of duty to act in a certain way. For instance, if a company has consistently provided warranty services in the past for its products, it can create an expectation for customers that such services will continue, leading to a constructive obligation to honor those warranties in the future.

Legal obligations, on the other hand, arise from legally binding contracts or laws and are enforceable by law. Contingent obligations relate to potential obligations that may occur depending on the outcome of a future event and are not guaranteed. Present obligations refer to existing obligations that the entity is currently bound to fulfill. None of these options capture the essence of obligations arising from the established patterns of past practices as effectively as constructive obligation does.