Legal term
Liability
A legal obligation to another party
Definition
A legal responsibility to compensate or perform, arising from contract, statute, or a duty owed in general law.
In more detail
Contracts frequently cap liability, exclude particular categories of loss, or allocate it between parties. Those clauses are usually the most commercially significant part of an agreement.
Statutory liability cannot always be excluded by agreement, and attempted exclusions may be unenforceable.
Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.