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Simple English definitions for legal terms
liability
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A quick definition of liability:
Term: Liability
Definition: Liability means being legally responsible for something. This can happen if you did something wrong, didn't do something you were supposed to do, or if someone or something you are responsible for caused harm. If you are found liable, you may have to pay money to make up for the harm caused. The rules about who is responsible for what can be different in different places. Sometimes, more than one person can be responsible for the same thing. In those cases, the rules about who has to pay can also be different. Businesses and people can try to protect themselves from being held liable by using different methods, like insurance or setting up their business in a certain way.
A more thorough explanation:
Definition: Liability refers to the legal responsibility of a party for something. In civil cases, a defendant can be held liable for their actions or inactions, or for the actions of people or animals they are responsible for. The exact conduct required to hold a party liable varies by state. Liability typically results in the payment of monetary damages, although specific performance may also be required in some cases. If multiple parties are responsible for the same thing, their individual liability depends on the state's laws.
Example: If a person is injured in a car accident caused by another driver's negligence, the negligent driver may be held liable for the injured person's medical expenses, lost wages, and other damages resulting from the accident.
Explanation: In this example, the negligent driver is responsible for the harm caused by their actions. They may be required to pay monetary damages to the injured person to compensate them for their losses. This is an example of how liability works in a civil case.
Example: In a joint and several liability state like Delaware, if two contractors are responsible for a construction defect that causes property damage, the property owner can recover the full amount of damages from either contractor, regardless of their individual level of responsibility.
Explanation: In this example, both contractors are liable for the property damage caused by the construction defect. Because Delaware follows joint and several liability, the property owner can recover the full amount of damages from either contractor, even if one contractor was more responsible for the defect than the other.
Example: In a several liability state like Georgia, if two contractors are responsible for a construction defect that causes property damage, the property owner can only recover damages from each contractor based on their individual level of responsibility.
Explanation: In this example, both contractors are liable for the property damage caused by the construction defect. However, because Georgia follows several liability, the property owner can only recover damages from each contractor based on their individual level of responsibility. If one contractor was more responsible for the defect than the other, they would be required to pay a larger share of the damages.
Business Context: Businesses can take steps to mitigate their risk of liability, such as forming corporations, LLPs, or LLCs. Insurance can also be used to reduce the risk of potential liability.