In civil law, what term refers to the legal obligation to pay or perform?

• A. Liability
• B. Asset
• C. Liable
• D. Not Liable

Answer: (A)

Liability is the term for the legal obligation to pay or perform. In civil law, liability arises when a person or entity is legally responsible for damages or for fulfilling a duty under a contract. This obligation can mean paying monetary damages or actually carrying out a required action. For example, breaching a contract can create liability to compensate the other party, and causing harm through a tort can create liability to pay damages. This concept is about the duty itself, not about value you own (which is an asset) or about being in a position of responsibility described by the adjective form (liable). Not liable would simply mean there is no such obligation.