A legally enforceable claim on the assets of a business or property of an individual. In business, liability results from a breach of duty or obligation by act or failure to act. Liability also refers to the debt or obligation of a business in contrast to its assets.
Definition from Nolo’s Plain-English Law Dictionary
1) In law, the state of being liable -- that is, legally accountable for an act or omission. 2) In business, money owed by a business to others, such as payroll taxes, a court judgment, an account payable, or a loan debt.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:19 pm