liability which arises out of the work done by independent contractors.
A liability imposed because of accidents caused by persons other than employees for whose acts an individual, partnership or corporation may be responsible. For example, an insured who hires an independent contractor can in some cases be held liable for his negligence.
This is money which might be owed if a particular event happens.
A liability or obligation which may arise in the event of a certain occurence; eg. the damages which might have to be paid to a external party in the event of a successful legal action. Contingent liabilities are not taken into account in the company balance sheet. Rather, they are normally disclosed in notes to the company's accounts.
Contingent Liability refers to a situation created when a merchants processes transactions before the date a cardholder receives the goods or services purchased. Travel agencies and mail order / telephone order merchants pose contingent liability risks to the bank.
Items which may become liabilities as a result of conditions undetermined at a given date, such as guarantees, pending law suits, judgments under appeal, unsettled disputed claims, unfilled purchase orders, and uncompleted contracts.
A liability which is dependent on the occurrence of one or more uncertain future events. Examples are guarantees of subsidiary company's loans, and lawsuits.
a conditional obligation that arises from past events that may require an outflow of resources embodying economic benefits based on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity
a potential claim on bank assets for which any actual or direct liability is dependent on some future event or circumstance
a potential liability which might cause you loss in the future
Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.
A liability which may be incurred by an insured as a result of negligence on the part of independent persons engaged to perform work. The most common example is the contingent liability of a principal contractor, which may result from construction operations undertaken by subcontractors. Also applies to the liability of a principal for the acts of an agent or servant.
The responsibility assumed by a third party who accepts liability for an obligation upon the failure of an initial obligor to perform as agreed.
Liability incurred because of negligence of a person engaged by the insured to perform work. For example, a contractor's responsibility for work of a subcontractor.
Liability may be created by the acts of non-employees where the company may be held responsible. It is possible for the insured to be held liable for an independent contractor's negligence.
A liability that arises only under specified conditions, e.g. when a bank opens a DC it is liable to make payment only when the DC terms are fully met.
Pending lawsuits, disputed claims, and any other estimated items that the Postal Service might have to pay in the future.
(a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of VNU; or (b) a present obligation that arises from past events but is not recognized because: (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability.
A liability that is dependent on other events. Such as, co-signing on a loan.
The liability of individuals, corporations or partnerships, for accidents caused by persons (other than employees) for whose acts or omissions the individuals, corporations or partnerships are legally responsible.
Contingent liabilities are costs, which the Crown will have to face if a particular event occurs. Typically, contingent liabilities consist of guarantees and indemnities, legal disputes and claims, and uncalled capital.
Liability arising out of work done by independent contractors for a firm. A firm may be liable for the work done by an independent contractor if the activity is illegal, the situation does not permit delegation of authority, or the work is inherently dangerous.
Liability imposed on a business entity (individual, partnership, or corporation) for acts of a third party for which the business entity is responsible.
A liability that arises only under specified conditions, e.g. when a bank opens a DC it incurs an obligation to make a future payment on condition that the terms are fully met.
This is where a liability is incurred by a business for acts other than those of its own employees. If an independent contractor is hired to carry out some work, then the business may be held liable for the negligent acts of the contractor if the contractor is acting under the direction or control of an employee of the business.
Something that might become a liability if something else happens. If a company is involved in a lawsuit for damages, for instance, there is a liability contingent on the company losing the case.
Legal liability that arises because of work performed by an independent contractor, such as a subcontract of a business.
A potential obligation that may be incurred dependent upon the occurrence of a future event. Two examples are: (1) the liability of an endorser or guarantor of a note if the primary borrower fails to pay as agreed and (2) the liability that would be incur
A contingent liability is a possible liability of a business that arises from past events. The reason why the liability is “contingent†is that its existence (and final amount) can only be by the occurrence of one or more uncertain future events not wholly within the control of the business. For example, a business may be subject to a legal claim of some kind which may result in the business having to pay costs or damages. The outcome of the legal claim may be uncertain – as might the possible costs arising. In this case, the business has to take a prudent view as to the likely outcome. Where the amount and outcome of a contingent liability can be predicted with reasonable likelihood, the “prudence†concept suggests that the business should make provision for the liability in its accounts as soon as possible. (See also provisions, prudence concept)
A banking term referring to an accounting posting that indicates a liability to the bank that will only exist if a specific event occurs. The terms covers liabilities such as those created by documentary credits and standby credits.
A liability that you may owe later, such as payments for lawsuits, unpaid taxes, or debts that you have agreed or guaranteed to pay if someone else does not.
This is the term used by underwriters and sales people to identify a situation that is created when merchants process transactions in advance of the date cardholders can expect to receive the goods or services they purchased. Travel agencies pose a contingent liability risk. Similarly, all MOTO merchants pose contingent liability risks to the bank. We limit this liability to a maximum of 90 days.
A potential obligation, dependent upon the occurrence of future events.
Potential LIABILITY arising from a past transaction or a subsequent event.
A potential obligation, the eventual occurrence of which usually depends on some future event beyond the control of the firm. May origin ate with lawsuits, credit guarantees, contested income tax assessments.
This refers to liabilities incurred by one party as a result of the actions of another party or their employees i.e. a developer would be liable for the negligent acts of their contractor or sub-contractors under the direction or control.
Liability which may or may not become an actual liability
A feature of the company’s accounts, contingent liabilities are those events stated as a current or future possibility.
A contingent liability is a potential call on government resources (contingent on particular events happening in the future). The Scottish Ministers have undertaken to present proposals for contingent liabilities in excess of £1m to the Finance Committee, which has the power to either approve the proposal or propose an amendment.
Future possible losses, which cannot yet be quantified.
potential liability dependent upon some future event occurring or not occurring. For example, a company is named as a defendent in a $1 million lawsuit. Does that mean the company automatically has a liability of $1million? What if the lawsuit has no merit and can easily be defended? If it is probable that the company will lose and the amount can be estimated, a journal entry is prepared to debit Loss from Lawsuit and to credit Lawsuit Payable. If it is possible but not probable that the company will lose, the journal entry is not made but instead there will be a footnote disclosure. If the lawsuit is remote (a nuisance suit without any merit), there is no need for a journal entry and no need to disclose the lawsuit. Accountants usually consider product warranties to be a contingent liability that is both probable and can be estimated and is therefore recorded with a journal entry. To Top