Liability
liability, or responsibility, is a legal concept that designates the obligation or responsibility of an individual or organization to compensate for damage, loss or obligations to another party. This responsibility may arise from contractual agreements or legal provisions. In the case of contractual liability, the obligation to pay damages arises when a party fails to perform its contractual obligations.
Liability can come in different forms
Contractual liability: This occurs when a party fails to comply with the terms of a contract, making them liable for any resulting damages.
Legal liability: This relates to violations of the law, where a person or organization can be held liable for the consequences of their actions or omissions, even without a specific agreement.
Liability is a concept in law and business because it is the basis for dispute resolution and provides certainty to those who suffer damages as a result of wrongful acts.
