contingent liability

a liability which will only arise upon the happening of a certain event, for example, the guarantor of a loan being asked to honour the guarantee if the borrower defaults. Glossary of Business Terms
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A debt or obligation that becomes a liability only when something else happens. For example, a guarantor becomes liable for his guarantee only if the debt that is guaranteed does not get paid by the debtor. American Banker Glossary

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   A charge that a business expects to pay, contingent on future events.

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contingent liability UK US noun [C] (plural contingent liabilities) (also contingency liability)
ACCOUNTING a debt which may occur in the future if particular events or situations happen, and which is included in a company's financial records: »

The company had kept its shareholders informed about the risk of losing the appeal and had carried the £7m as a contingent liability in its accounts.


Financial and business terms. 2012.

Look at other dictionaries:

  • contingent liability — see liability 2a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. contingent liability …   Law dictionary

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  • contingent liability — 1) A possible obligation that arises from past events, whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within an entity s control. 2) A present obligation that arises from past events in… …   Accounting dictionary

  • contingent liability — 1) A possible obligation that arises from past events, whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within an entity s control. 2) A present obligation that arises from past events in… …   Big dictionary of business and management

  • contingent liability — noun : an amount that may or may not be owed dependent on the outcome of a contingency (as a discounted note receivable) * * * a liability dependent upon the occurrence of a particular event, as default by the maker of a guaranteed loan. * * *… …   Useful english dictionary

  • Contingent Liability — 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. 1. A good example of a contingent liability would be an… …   Investment dictionary

  • contingent liability — neapibrėžtasis įsipareigojimas statusas T sritis Gynyba apibrėžtis 1. Įsipareigojimas, kuris gali atsirasti dėl praeities įvykių ir kurio buvimą patvirtins vienas arba daugiau įmonės ar organizacijos nevisiškai valdomų atsitikimų, įvyksiančių ar… …   Lithuanian dictionary (lietuvių žodynas)

  • Contingent liability — Contingent liabilities are liabilities that may or may not be incurred by an entity depending on the outcome of a future event such as a court case. These liabilities are recorded in a company s accounts and shown in the balance sheet when both… …   Wikipedia

  • contingent liability — a liability dependent upon the occurrence of a particular event, as default by the maker of a guaranteed loan. * * * …   Universalium

  • contingent liability — /kənˌtɪndʒənt laɪə bɪlɪti/ noun a liability which may or may not occur, but for which provision is made in a company’s accounts, as opposed to ‘provisions’, where money is set aside for an anticipated expenditure …   Marketing dictionary in english

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