Contract Liability
[/ˈkɑːntrækt laɪˈæbɪləti/]
nounpl: Contract Liabilities
Responsabilidade Contratual
1. A legal obligation or debt arising from the terms and conditions of a contract between two or more parties; the party's duty to perform obligations as specified in the contract agreement
The contractor's contract liability includes completing the project within the agreed timeline and budget.
A responsabilidade contratual do empreiteiro inclui completar o projeto dentro do prazo e orçamento acordados.
2. In accounting and finance, an obligation recorded on the balance sheet that represents amounts owed to fulfill contractual commitments
The company's balance sheet shows contract liabilities of $5 million for performance obligations not yet satisfied.
O balanço patrimonial da empresa mostra responsabilidades contratuais de $5 milhões para obrigações de desempenho ainda não cumpridas.
3. Legal responsibility for damages or losses resulting from breach of contract or failure to meet contractual obligations
The supplier faced contract liability claims after failing to deliver the goods on time.
O fornecedor enfrentou reclamações de responsabilidade contratual após não entregar as mercadorias no prazo.
Contract liability is a fundamental concept in both Brazilian and American business law. In Brazil, it is governed by the Civil Code (Código Civil) and Commercial Law (Direito Comercial), while in the USA it falls under common law and state contract law. Both jurisdictions emphasize written contracts to clearly define liabilities and protect parties through damage limitations and indemnification clauses. The term is frequently used in corporate negotiations, insurance policies, and financial reporting under IFRS/GAAP standards.
Related Idioms & Phrases
to incur contract liability
to assume contract liability
contract liability exposure
mitigate contract liability
limited contract liability
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