1. Liability is defined as the state of being responsible for something or something that someone is responsible for.
   1. An example of liability is a person having to pay back student loans.
   2. An example of liability is payment for a car accident.

liability

liability

noun

pl. li·a·bil·i·ties

1. The state of being liable.
2. 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.
3. Something that holds one back; a handicap.
4. Likelihood.

liability

Noun

(plural liabilities)

1. the condition of being liable
2. an obligation, debt or responsibility owed to someone.
3. a handicap that holds one back
4. the likelihood of something happening

Antonyms

• asset

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.

liability - Legal Definition

n

1. A legally enforceable obligation.
2. More generally, a debt or other legal obligation to pay an assessed amount (for example, taxes).

joint and several liability

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 liability

Liability that is jointly payable by multiple parties, of which none may be required to pay more than his or her share.

primary liability

Liability for which one is directly responsible, without the claimant being obligated to resort to any other source for payment.

secondary liability

Liability that one is not obligated to pay unless the party with primary liability fails to make payment.

strict liability

In 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 liability

The liability of an employer or supervisor for the acts of an employee, based on the employer-employee or supervisory relationship. See respondeat superior.