What is the difference between Liabilities and Commitment?

Liabilities are financial obligations that a company owes to outside parties, such as loans, Accounts Payable, and other debts that require future settlement. Commitments, on the other hand, refer to future obligations that a company has agreed to, which may not yet be recognized as liabilities on the balance sheet, such as contracts for future purchases or leases. While liabilities represent current debts, commitments are more about future financial responsibilities that can impact a company's cash flow.