Contingencies
Definitions
- (n.) Possible future events or circumstances that may affect legal rights or obligations, often accounted for in contracts or risk management.
The contract included provisions for various contingencies such as natural disasters and supplier failure.
- (n.) Funds or allowances set aside to cover unforeseen liabilities or expenses in business or legal contexts.
The company allocated contingencies in its budget to handle potential litigation costs.
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Commentary
In legal drafting, clearly defining contingencies helps allocate risk and clarify parties' obligations under uncertain future events.
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.