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liability

lye-uh-BIL-uh-tee /ˌlaɪəˈbɪlɪti/

nounB2SATGREGMATTOEFL

FormalLegalBusiness

The state of being legally responsible for something, especially financial debts or obligations.

Can refer to broad legal responsibility, potential financial loss, or a disadvantageous debt on a financial balance sheet.

The story behind the word. From Anglo-French liable ('bound, answerable'), stemming from Old French lier and Latin ligare ('to tie or bind'). To have liability means you are legally tied or bound to fulfill a debt, answer for harm, or make restitution.

Word relationships

responsibility: Broader term encompassing moral or social duty as well as legal obligation.
accountability: Focuses on obligation to give account or explanation for actions.

asset: A valuable resource or financial gain rather than a debt or obligation.
immunity: Exemption or freedom from legal responsibility.

Commonly confused with

culpability: Culpability emphasizes moral fault or guilt, while liability focuses on legal obligation to compensate or answer.

Word family

liable (adjective): Legally responsible or obligated.
liabilities (noun): Plural form; financial obligations on a balance sheet.

Collocations

legal liability
admit liability
limit liability
joint liability
product liability

Example sentences

"The company sought to limit its product liability by providing comprehensive warnings on every package." Corporate risk management
"After reviewing the traffic footage, the insurance adjusters determined full liability rested with the driver who ran the red light." Automobile accident dispute

Memory hook

When you have liability, you are TIED (like ligatures) to pay or make things right. Legally bound to answer or pay.

When not to use

Do not use to describe general moral responsibility when no legal or financial obligation exists.

Fun facts

The Latin root ligare also gives us 'ligament' (tissues that bind joints) and 'obligation' (something that binds you).