Liability Allocation
/ˌlaɪəˈbɪləti ˌæləˈkeɪʃən/
Definitions
- (n.) The process of determining and distributing responsibility for legal obligations or debts among parties involved in a transaction or dispute.
The contract included a clause for liability allocation to specify each party’s financial responsibilities.
- (n.) An agreement or clause in contracts that assigns legal responsibility for certain risks, damages, or losses between parties.
The liability allocation clause indemnified the supplier against damages caused by misuse.
Forms
- liability allocations
Related terms
See also
Commentary
Liability allocation is critical in contracts to clarify risk distribution; drafting should specify scope and limits clearly to avoid disputes.
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.