contingent liability

  • Responsibility for acts or omissions on the part of one party that may befall another due to unforeseen, conditional circumstances, or possibilities. (Usually called nonownership liability or owner’s risk.)

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).