Financial Responsibility
/ˌfaɪˈnænʃəl rɪˌspɒnsɪˈbɪləti/
Definitions
- (n.) A legal obligation to ensure the payment of damages or financial penalties arising from certain activities or liabilities.
The company demonstrated financial responsibility by securing adequate insurance coverage for potential liabilities.
- (n.) The legal requirement imposed on parties to bear monetary costs associated with damages, losses, or debts.
Drivers must prove financial responsibility to register their vehicles legally.
Forms
- financial responsibility
Related terms
See also
Commentary
Often used in contexts involving insurance, liability, and regulatory compliance; ensure clarity about the specific legal duty when drafting.
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.