- Liability is defined as the state of being responsible for something or something that someone is responsible for.
- An example of liability is a person having to pay back student loans.
- An example of liability is payment for a car accident.
liability definition by Webster's New World
noun pl. liabilities
- the state of being liable
- anything for which a person is liable
- Accounting
- a debt of a person or business, as a note payable or a long-term debenture
- an account on a balance sheet showing this
- something that works to one's disadvantage
liability definition by American Heritage Dictionary
noun pl. li·a·bil·i·ties
- The state of being liable.
- a. Something for which one is liable; an obligation, responsibility, or debt.b. liabilities The financial obligations entered in the balance sheet of a business enterprise.
- Something that holds one back; a handicap.
- Likelihood.
liability - Business Definition
- An obligation to pay to another party an amount in money, goods, or services. The balance sheet of a business lists its liabilities. Also called debt. Compare asset. See also contingent liability, current liability.
- An obligation or duty to perform some act. For example, a new employee has a liability to his or her employer.
liability - Cultural Definition
An obligation or debt.
liability - Investment & Finance Definition
An obligation to make a payment to a person or company in exchange for a benefit that has been received or money that has been lent. The liability section on a company’s balance sheet is one of the three major parts of the balance sheet.
An obligation to pay an amount in money, goods, or services to another party. The balance sheet lists the liabilities. Also called debt. Compare asset. See also contingent liability, current liability.
liability - Legal Definition
n
- A legally enforceable obligation.
- More generally, a debt or other legal obligation to pay an assessed amount (for example, taxes).
Liability that is jointly payable by multiple
parties, but that may (or must, depending on jurisdiction) be paid in full by
one or more of them if the others are not to be found or are incapable of
paying their share.
joint liabilityLiability that is jointly payable by multiple parties, of
which none may be required to pay more than his or her share.
primary liabilityLiability for which one is directly responsible, without the
claimant being obligated to resort to any other source for payment.
secondary liabilityLiability that one is not obligated to pay unless the party
with primary liability fails to make payment.
strict liabilityIn tort law, a financial responsibility to compensate a harm
in the absence of any negligence; an absolute responsibility to ensure the safe
functioning of a dangerous instrumentality.
vicarious liabilityThe liability of an employer or supervisor for the acts of an
employee, based on the employer-employee or supervisory relationship. See respondeat superior.
