contingent liability

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Contingent Liability

A liability that a company may have to pay, but only if a certain future event occurs. Usually, a contingent liability refers to the outcome of a lawsuit: that is, the company may have to pay a significant amount of money if it loses the lawsuit. Contingent liabilities are recorded under accounts payable; their existence may also affect the share price.

contingent liability

An obligation that may result, but is not likely to result because the event causing the obligation is improbable. For example, the award from a lawsuit against a firm is a contingent liability of the defendant if there is little likelihood the plaintiff will recover the award.

contingent liability

a liability which may or may not occur depending upon an uncertain event, for example, the outcome of a court case in which damages are being claimed against a firm.

contingent liability

A liability that is not currently a liability but may become one upon the happening of some future event.If a father guarantees the student housing lease of his son,then the son is liable for the rent but the father may become liable if the son defaults. Other common contingent liabilities are guarantees of the debts of others,potential adverse judgments in litigation,and currently contested tax liabilities or audits. Lenders sometimes request a list of all contingent liabilities when evaluating a borrower's financial strength.

References in periodicals archive ?
Mark Bartholomew, Copyright, Trademark and Secondary Liability After Grokster, 32 COLUM.
In the copyright arena, secondary liability arises from judicial
Central Bank circumscribed a general understanding that secondary liability concepts inhered in the securities laws.
76) Because of the courts' inability to adequately and consistently apply the law, Congress, not the courts, should step in to remedy the flaws of secondary liability in copyright infringement.
Fischel, Secondary Liability Under Section l O(b) of the Securities Exchange Act of 1934, 69 CAL.
Post-Napster: Peer-to-Peer File Sharing Systems: Current and Future Issues on Secondary Liability Under Copyright Laws in the United States and Japan, 22 Loy.
COMMON LAW DOCTRINES OF SECONDARY LIABILITY AND THE DEFENSE OF SUBSTANTIAL NON-INFRINGING USE: MISAPPLIED IN GROKSTER?
Secondary liability, which encompasses vicarious and contributory liability, attaches when the responsible party is not the "actual" infringer.
Cyberlaw: Intellectual Property in the Digital Millennium explains how the common-law rules of secondary liability for copyright infringement, as affected by the Supreme Court's Grokster decision, work in the context of the Internet, and how statutory overlays have complicated their operation.
The parties are currently involved in discovery disputes regarding many issues related to the secondary liability portion of the case, including evidence similar to that which is being sought by the U.
It explains the Digital Millennium Copyright Act, its effect on primary and secondary liability, the new classifications and terminology, the anti-circumvention and anti-trafficking rules, new limitations on internet service provider liability, and the continuing role of the federal common law.

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