Contagion
/kən-ˈtā-jən/
Definitions
- (n.) The legal principle by which financial distress or default of one institution spreads to others, causing systemic risk.
The contagion effect contributed to the widespread collapse of banks during the financial crisis.
- (n.) Transmission of disease or harmful conditions recognized under public health law affecting legal responsibilities.
The statute addresses liability for contagion in healthcare settings.
Related terms
See also
Commentary
In legal contexts, contagion often denotes systemic financial risk rather than solely biological transmission, requiring precise usage to distinguish these meanings.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.