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Glossary of Legal, Business and Financial Terms

This glossary contains definitions of common legal terms, as well as words and phrases related to business and finance. Some terms may have different meanings based on the area of law or the context in which they are used.

Liability (liable)

Legal responsibility; the state of being legally obliged and responsible. Exposure to damage, either legal or financial. In business law, liability refers to the responsibility for a company's debt or other obligations. In an accounting sense, the word refers to a claim on a company's assets, such as a loan, charge, mortgage, lien, etc.