legal liability

Popular Terms
Obligations under law arising from civil actions (torts) or under contract. Legal liability can only be decided by courts even if the settlement is made out of the court by mutual agreement. Liability insurance normally covers only the liability arising from torts and not from the contractual obligations.

Use 'legal liability' in a Sentence

We always make sure that any safety changes are documented and signed off by our employees to reduce the company's legal liability in the event of an accident.
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The legal liability was nothing for the corporation, fortunately the officers for the board of directors operated morally and contributed.
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Contractors have a legal liability to provide services only if they are licensed within the state they will be performing the work, if they don't homeowners can sue for any damages that occur.
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