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LSDefine

Simple English definitions for legal terms

contribution

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A quick definition of contribution:

Contribution: Contribution is a term used in law and business. In law, it refers to a defendant's ability to recover damages from co-defendants in a joint and several liability jurisdiction. This means that a negligent defendant is liable to pay damages for all harm suffered by the plaintiff, even if the negligence of other parties caused some of that harm. After a plaintiff collects from a jointly and severally liable defendant, that defendant may initiate a separate lawsuit seeking contribution against the co-defendants. In business, contribution may refer to a capital contribution, which is money or assets given to a business or partnership by one of the owners or partners, or a charitable contribution, which is money or assets given to a corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes.

A more thorough explanation:

Contribution is a term used in business and tort law. In tort law, it refers to an action a defendant may bring in a joint and several liability jurisdiction to recover for damages they paid out but did not cause. This means that if a plaintiff collects from a jointly and severally liable defendant, that defendant may initiate a separate lawsuit seeking contribution against the co-defendants. In this suit, the co-defendants will be required to pay damages in proportion to their blame for causing the injuries.

For example, if A and B negligently injure V, and V successfully sues A and B for $100,000, that the jury finds A 10% responsible for V's injuries, and B 90% responsible. Because A and B are jointly and severally liable, V may collect the full $100,000 from A. A may then demand that B pay their share of the judgment - here, $90,000.

In business law, contribution may refer to a capital contribution, which is money or assets given to a business or partnership by one of the owners or partners. The capital contribution increases the owner or partner's equity interest in the entity. Capital contributions are not considered business income unless given in the form of a loan.

Contribution may also refer to a charitable contribution, which is money or assets given to a corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes. Charitable contributions are tax deductible for up to one half of an individual's adjusted gross income, and up to ten percent of a corporation's taxable income.

Overall, contribution is an important concept in law that helps to ensure that damages are paid out fairly and proportionally among all parties involved.

contractual lien | contributory infringement

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