Definition: Liability

From New World Encyclopedia
(Redirected from Liability)


From liable, from Old French lier (to bind), from Latin ligare (to bind, to tie), + -ity.


liability (countable and uncountable, plural liabilities)

  1. An obligation, debt, or responsibility owed to someone.
    1. (accounting) Any item recorded on the right-hand side of a balance sheet.
  2. A handicap that holds something back, a drawback, someone or something that is a burden to whoever is required to take care of them; an individual or action that exposes others to greater risk.
  3. The likelihood of something happening.
  4. The condition of being susceptible to something.

Derived terms

  • alternative liability
  • current liability
  • enterprise liability
  • liability insurance
  • limited liability
  • limited liability company
  • private limited liability company
  • public limited liability company
  • secondary liability
  • strict liability
  • vicarious liability


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