Liability definition: Copy, customize, and use instantly
Introduction
The term "Liability" refers to an obligation, duty, or responsibility that a person or entity is legally required to fulfill. It can arise from contracts, laws, or regulations and may involve financial, legal, or operational burdens. Liabilities play a crucial role in defining risks, responsibilities, and obligations in various agreements, ensuring clarity in contractual and legal relationships.
Below are various examples of how "Liability" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Liability" as a financial obligation
This definition ties "Liability" to financial debts and commitments.
"Liability" means any obligation to pay money, whether due or to become due, including debts, loans, bonds, and other financial commitments, whether secured or unsecured.
Definition of "Liability" as a contractual duty
This definition connects "Liability" to contractual obligations.
"Liability" refers to any duty, obligation, or responsibility arising under a contract, including obligations to perform services, supply goods, or provide compensation for non-performance.
Definition of "Liability" as a legal responsibility
This definition links "Liability" to legal obligations.
"Liability" means any legal obligation imposed by law, regulation, or judicial order, including penalties, fines, damages, and other legal consequences arising from non-compliance.
Definition of "Liability" as an employer’s responsibility
This definition applies "Liability" to employer obligations.
"Liability" refers to an employer’s responsibility to provide wages, benefits, and protections to employees, including compliance with labor laws, workplace safety regulations, and tax obligations.
Definition of "Liability" as a tort-based obligation
This definition ties "Liability" to personal injury and tort claims.
"Liability" means any responsibility for damages or harm caused to another party due to negligence, misconduct, or breach of legal duty, including personal injury and property damage claims.
Definition of "Liability" as tax obligations
This definition connects "Liability" to taxation.
"Liability" refers to all obligations to pay taxes, including income tax, corporate tax, VAT, duties, and levies, whether assessed or disputed, and any related interest or penalties.
Definition of "Liability" as environmental responsibility
This definition links "Liability" to environmental compliance.
"Liability" means any obligation arising from environmental laws, including responsibility for pollution, waste disposal, emissions control, and remediation of contaminated sites.
Definition of "Liability" as a corporate governance duty
This definition applies "Liability" to corporate officers and directors.
"Liability" refers to the legal and fiduciary responsibilities of directors and officers, including duties of care, loyalty, and compliance with corporate governance laws.
Definition of "Liability" as insurance coverage responsibility
This definition ties "Liability" to insurance obligations.
"Liability" means an obligation covered by an insurance policy, including claims, settlements, and defense costs arising from covered risks under the policy terms.
Definition of "Liability" as joint and several obligations
This definition connects "Liability" to shared responsibilities.
"Liability" refers to an obligation that may be enforced against one or more parties, jointly or separately, for the full amount of a debt or claim, as permitted by law.
Definition of "Liability" as a surety or guarantor’s responsibility
This definition links "Liability" to guarantee agreements.
"Liability" means the obligation of a surety or guarantor to satisfy the debt or performance failure of another party under a contractual or legal guarantee.
Definition of "Liability" as financial reporting obligations
This definition applies "Liability" to accounting and financial disclosures.
"Liability" refers to obligations recorded in financial statements, including short-term and long-term debts, accounts payable, and contingent liabilities.
Definition of "Liability" as indemnification obligations
This definition ties "Liability" to indemnification clauses.
"Liability" means any obligation to compensate, reimburse, or defend another party against claims, losses, or damages arising from specific contractual terms.
Definition of "Liability" as cybersecurity and data protection responsibility
This definition connects "Liability" to digital security laws.
"Liability" refers to an entity’s legal and regulatory obligations to protect sensitive data, prevent breaches, and comply with cybersecurity and privacy laws.
Definition of "Liability" as a product liability duty
This definition links "Liability" to product safety.
"Liability" means any legal responsibility arising from the design, manufacture, sale, or distribution of defective or hazardous products that cause harm or damage.
Definition of "Liability" as an obligation under intellectual property laws
This definition applies "Liability" to intellectual property rights.
"Liability" refers to any legal responsibility for infringement, misappropriation, or unauthorized use of intellectual property, including patents, copyrights, and trademarks.
Definition of "Liability" as an obligation under international law
This definition ties "Liability" to cross-border legal matters.
"Liability" means any duty or obligation recognized under international treaties, conventions, or agreements, including trade, human rights, and environmental compliance.
Definition of "Liability" as an obligation in construction contracts
This definition connects "Liability" to construction and engineering agreements.
"Liability" refers to an obligation to complete work, rectify defects, or compensate for delays, damages, or non-compliance with project specifications.
Definition of "Liability" as a financial institution’s obligations
This definition links "Liability" to banking and finance.
"Liability" means a financial institution’s obligations to depositors, lenders, or investors, including capital requirements, loan repayments, and regulatory compliance.
Definition of "Liability" as an obligation in employment law
This definition ties "Liability" to workplace legal responsibilities.
"Liability" means any legal responsibility an employer has toward employees, including wages, benefits, wrongful termination claims, and workplace safety compliance.
Definition of "Liability" as an obligation in lease agreements
This definition connects "Liability" to rental and leasing contracts.
"Liability" refers to the financial and legal obligations of a tenant or landlord under a lease, including rent payments, property maintenance, and damages.
Definition of "Liability" as an obligation for breach of contract
This definition links "Liability" to non-performance in agreements.
"Liability" means any obligation to compensate a party for losses or damages resulting from a failure to perform duties under a contract.
Definition of "Liability" as an obligation in transportation law
This definition applies "Liability" to logistics and transport regulations.
"Liability" refers to legal responsibility for accidents, cargo loss, or damage arising from transportation services, including carrier obligations under shipping laws.
Definition of "Liability" as a responsibility in banking regulations
This definition ties "Liability" to financial institutions.
"Liability" means any obligation of a bank or financial institution to depositors, regulators, or counterparties, including repayment of loans and compliance with financial laws.
Definition of "Liability" as a duty in healthcare compliance
This definition connects "Liability" to medical and healthcare providers.
"Liability" refers to the legal responsibility of healthcare providers for malpractice, patient safety, and adherence to medical regulations and standards.
Definition of "Liability" as an obligation in pension plans
This definition links "Liability" to retirement and pension funds.
"Liability" means the obligation of an employer or pension fund to provide retirement benefits, including funding commitments and regulatory compliance.
Definition of "Liability" as an obligation under franchising agreements
This definition applies "Liability" to franchisors and franchisees.
"Liability" refers to the financial, operational, and legal responsibilities of a franchisor or franchisee under a franchise agreement, including indemnities and compliance duties.
Definition of "Liability" as an obligation in mergers and acquisitions
This definition ties "Liability" to corporate transactions.
"Liability" means any debt, claim, or financial obligation transferred or assumed in connection with a merger, acquisition, or corporate restructuring.
Definition of "Liability" as a duty in advertising and marketing compliance
This definition connects "Liability" to consumer protection laws.
"Liability" refers to the legal obligation of businesses to ensure truthful advertising, prevent misleading claims, and comply with consumer protection laws.
Definition of "Liability" as an obligation in nonprofit organizations
This definition links "Liability" to charitable entities.
"Liability" means any legal, financial, or regulatory obligation a nonprofit organization has, including tax compliance, fiduciary duties, and donor accountability.
Definition of "Liability" as a responsibility in securities law
This definition applies "Liability" to investment and trading regulations.
"Liability" refers to obligations arising under securities laws, including disclosure requirements, fraud prevention, and penalties for insider trading violations.
Definition of "Liability" as a duty in government contracts
This definition ties "Liability" to public procurement.
"Liability" means the financial and legal obligations of a contractor under a government contract, including performance guarantees and compliance with regulatory terms.
Definition of "Liability" as an obligation in disaster recovery
This definition connects "Liability" to emergency response and recovery.
"Liability" refers to obligations for financial restitution, rebuilding efforts, and compensation related to property damage or injuries caused by natural disasters or emergencies.
Definition of "Liability" as an obligation under professional licensing
This definition links "Liability" to compliance with professional standards.
"Liability" means any responsibility imposed on licensed professionals for non-compliance with industry regulations, ethical breaches, or malpractice claims.
Definition of "Liability" as an obligation in artificial intelligence regulation
This definition applies "Liability" to AI development and use.
"Liability" refers to the legal responsibility of AI developers and users for harm, bias, or regulatory violations caused by artificial intelligence systems.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.