ENGLISH
REFERENCE

liabilities

n.
US //ˌɫaɪəˈbɪɫətiz// UK //lˌaɪəbˈɪlɪtiz// li·a·bil·i·ties
  1. 1 financial debts (n.)
    B2 Upper Intermediate Technical Law

    the total amount of money that a person or company owes to others.

    the financial obligations of an entity, including loans, accounts payable, and accrued expenses. Usually plural in this sense.

    Example

    The company had to sell its office building to pay off its liabilities.

    Example

    The auditor noted that the firm's current liabilities exceeded its liquid assets, raising concerns about its short-term solvency.

    Usage

    Often used in the plural form when referring to a list of debts on a balance sheet.

  2. 2 legal responsibilities (n.)
    B2 Upper Intermediate Formal Law

    the state of being legally responsible for something, especially for paying for damage.

    the state of being legally responsible for an act or omission. Often used in insurance and legal contexts.

    Example

    The business carries insurance to cover any potential liabilities from accidents.

    Example

    The contract clearly defines the liabilities of each party in the event of a data breach or system failure.

    Usage

    Can be used as a countable noun referring to specific legal risks or as an uncountable noun for the general state of responsibility.

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  1. 3 disadvantages or risks (n.)
    C1 Advanced Informal

    people or things that cause problems or are likely to cause trouble in the future.

    persons or things whose presence or behaviour is likely to cause embarrassment or disadvantage. Figurative extension of the financial sense.

    Example

    The noisy fans became liabilities for the restaurant after the neighbours complained.

    Example

    In a high-stakes political campaign, candidates with a history of controversial statements are often viewed as major liabilities by their own parties.

    Teacher's tip

    In this informal sense, a person can be 'a liability'. It suggests they are a weakness to a team rather than a strength.

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