What is Liability?

Answer 1

Liability refers to the legal obligation or responsibility that individuals, businesses, or organizations have to settle any debts, fulfill contracts, or compensation claims arising from their actions or omissions. It involves the potential legal or financial risk associated with these obligations that can result in loss or harm to others. In essence, liability signifies the accountabilities and duties that an entity has to fulfill in order to adhere to the law, protect others, or compensate for any damages caused.