Discharge of Liability
/dɪsˈtʃɑːrdʒ əv laɪəˈbɪləti/
Definitions
- (n.) The act of releasing a party from legal responsibility or obligation, often following fulfillment or settlement.
The discharge of liability occurred after the debtor fully paid the creditor.
- (n.) A formal acknowledgment absolving a guarantor or surety from further duty upon performance by the principal obligor.
The lender issued a discharge of liability to the guarantor once the loan was repaid.
Related terms
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Commentary
Often used in contracts and suretyship contexts to denote cessation of legal duties; clarity in specifying conditions triggering discharge is advisable.
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.