contingent liability

(redirected from Indirect Liability)

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 ?
Secondary liability in various areas of law, sometimes also called "indirect liability," (1) entails holding a party liable for the wrongdoing of another, "primary" actor--the person who actually performed the offending act.
The example held that the described indirect liability assumption did not disqualify the otherwise qualified C reorganization.
(2) The author suggests that rather than continuing to apply the inducement rule where there are questions of indirect liability in copyright infringement, courts should instead take into account the harm done to copyright owners by the designers of file-sharing software.
A suitable target for indirect liability is one who can detect and deter another's bad acts and who would be encouraged by a liability rule to "internalize some significant negative externality unavoidably associated with its activities." ISPs are a natural choice, says Lichtman, because of their ability to screen users' communications.
However, last year, attorneys brought two broad class action lawsuits under the ATCA which allege injury based on vicarious or indirect liability. The plaintiffs allege that some of the world's most visible multinationals indirectly caused injury when products or services they sold to the South African government were used to undermine human rights during the apartheid era.
(92) Specifically, the courts established different criteria for direct and indirect liability, including vicarious and contributory forms.
The second section looks at legal issues for e-business in general, including personal jurisdiction, security, e-signatures, copyrights, trademarks, trade dress, e-mail, indirect liability, business method, software patents, and domain name disputes.
The second section covers the legal issues associated with conducting e-business for any industry, including personal jurisdiction, security, e-signatures, copyright, trademark, trade dress, electronic mail, indirect liability and domain name disputes.
Lucent's evidentiary approach presents something of a counterpoint to the traditional tort law view of indirect liability, though the Lucent court, too, left some important assumptions unstated and did not make clear why it refused to rely on tort law's imputation principle.
But, as I will argue here, immunity in this instance is hard to defend on policy grounds and it is sharply inconsistent with the conventional logic of indirect liability.
The STN and the World Bank shall have no direct or indirect liability or responsibility to any person or entity for any losses, damages, costs, charges, expenses or other obligations arising from any investment in the ID ETF.

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