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Liability

ly-uh-BIL-ih-tee /ˌlaɪəˈbɪlɪti/

nounC1GRETOEFLIELTS

FormalLegalBusiness

The state of being responsible for something, especially by law; a thing for which someone is responsible, especially a debt or financial obligation.

Implies legal responsibility, often for a debt, damage, or a failure to act. It can refer to the state of being responsible or the actual financial burden.

The story behind the word. The word 'liability' comes from the Old French lier, meaning 'to bind,' which itself traces back to the Latin verb ligare, meaning 'to bind.' This is the same root we see in 'obligation'! So, if you have a 'liability,' you are 'bound' by law to a responsibility, often a financial one, or 'bound' to face the consequences of an action. It's the legal 'tie' that holds you accountable.

Word relationships

Responsibility: The state or fact of being accountable or to blame for something.
Obligation: An act or course of action to which a person is morally or legally bound.
Debt: A sum of money that is owed or due.

Asset: A useful or valuable thing or person; a property owned by a person or company.
Immunity: Protection or exemption from something, especially an obligation or penalty.

Commonly confused with

Obligation: An 'obligation' is a duty you must perform; 'liability' is the legal responsibility for the consequences if something goes wrong or for a debt.

Word family

liable (adjective): responsible by law; legally answerable

Collocations

legal liability
financial liability
limited liability
product liability
assume liability

Idioms & expressions

a liability to (someone/something)

Example sentences

"The company accepted full liability for the accident and agreed to pay compensation to the victims." Referring to legal responsibility for harm.
"The new tax laws created a significant financial liability for small business owners." Describing a financial burden.
"His lack of experience proved to be a liability in the high-pressure environment." In a general sense, a disadvantage.

Memory hook

LIABILITY means you are LIABLE to pay or be held responsible. LI-A-BIL-ity: Legally bound.

When not to use

Do not use 'liability' for general tasks or duties that don't carry legal or financial risk. It implies a potential negative consequence.

Fun facts

The legal concept of 'limited liability' allows business owners to limit their personal financial risk to the amount of their investment in the company, rather than being personally 'liable' for all company debts.