Organizational Liability
/ˌɔːrɡənaɪˈzeɪʃənəl laɪəˈbɪləti/
Definitions
- (n.) Legal responsibility of an organization for acts performed by its agents, employees, or members within the scope of their authority.
The company faced organizational liability for the fraudulent actions committed by its executives.
- (n.) Liability imposed on a corporation or similar entity distinct from the liability of its individual members or officers.
Organizational liability may result from contractual breaches or regulatory violations at the corporate level.
Forms
- organizational liability
Related terms
See also
Commentary
Organizational liability typically arises in contexts where the conduct of individuals is attributed to the entity itself, notable in corporate and agency law.
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.