Treasury Secretary Geithner had knowledge of the AIG bonuses but failed to stop them because they were obligations between a private company and its employees.

Contractual

Explanation: contractual obligations involves a legal agreement between two or more parties. It refers to a voluntary, deliberate, and legally binding agreement between parties ( two or more people). A breach of contract by either of the party involved means the other party can sue or sued as the case may be.

In this scenario, Treasury Secretary Geithner had knowledge of the AIG bonuses but failed to stop them because they were contractual obligations between a private company and its employees. In other means Treasury Secretary Geithner can’t stop the AIG bonuses because of the contractual agreement that exist between the parties involved.

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