liability

lye-uh-BIL-ih-tee /ˌlaɪ.əˈbɪl.ə.ti/
nounB2GREGMATLSAT
formallegalbusiness

The state of being legally responsible for something, or a financial obligation owed to another.

Refers to legal accountability or a debt/obligation that must be settled.

The story behind the word. Traced through Old French lier (to tie or bind) from Latin ligare. Liability literally describes a legal bond that ties a person to an obligation or debt.

Word relationships

  • responsibility: Responsibility can be moral or social, whereas liability is legally enforceable.
  • obligation: An obligation is a broad duty, whereas liability specifically highlights accountability for loss or harm.
  • immunity: Immunity is legal protection exemption from liability.
  • asset: An asset is a financial resource, whereas a financial liability is a debt.

Commonly confused with

  • culpability: Culpability implies moral guilt or blameworthiness; liability is legal responsibility to pay or remedy.

Word family

  • liable (adjective): Legally responsible

Collocations

  • strict liability
  • joint liability
  • product liability
  • limit liability

Example sentences

  • "Incorporating the business as an LLC shields personal assets from company liability." Corporate law review
  • "The driver purchased third-party liability insurance to cover prospective damages." Insurance policy document

Memory hook

LIABLE means TIED to a legal debt. Bound by law to pay.

When not to use

Do not confuse with 'blame' in an informal moral sense; liability implies legal or financial duty.

Fun facts

  • In accounting, liabilities appear on the right side of the balance sheet and balance out assets.

Related words

vicarious, indemnity, damages

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