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What Is Legal Liability?

A person, company, corporation, or entity can be held legally responsible for certain actions or situations. This kind of instance is most often found when contracts are involved. Parties who have entered into a contract or legally binding agreement are fully responsible for delivering goods or services based on the terms and conditions provided in the contract or agreement. This kind of situation refers to a party’s legal liability.


Legal liability is a terminology in law that refers to a party’s legal responsibility towards another party. Liability is the subject of many lawsuits wherein a plaintiff may claim that the defendant was legally responsible for an event or situation. However, legal liability can be interpreted by a judge or jury depending upon the circumstances of the event or situation.


Civil law cases often deal with cases involving the question of legal liability. Litigation involving legal liability often deals with parties failing to deliver promises based on a contract. Thus, the party who defaulted on the contract may be legally liable for the damages or harm suffered by the other party.


For legal liability to be proven in a court of law, several things must be proven; first, that the party who is to be held accountable is the contract party who defaulted and second, that the party did not fulfill a certain term or condition of the contract. This is often the issue when it comes to cases of liability insurance wherein a party may claim insurance once it has been proven that another party is legally liable for an incident or accident.

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