Which term defines the legal responsibility of an individual or entity to compensate for damages?

Liability is the term that defines the legal responsibility of an individual or entity to compensate for damages. In legal terminology, liability refers to the obligation to make reparations for harm or loss caused to another party. This responsibility may arise from various circumstances, including breach of contract, negligence, or other wrongful acts that result in damage or injury.

Liability can manifest in civil cases, where a party may be sued for damages, and the courts determine whether the responsible party must compensate the injured party. Moreover, liability can also extend to various forms, such as strict liability, where a party is held responsible regardless of fault, or vicarious liability, which holds one party responsible for the actions of another.

While terms like indemnity, accountability, and affidavit may intersect with discussions of liability in certain contexts, they do not directly capture the essence of legal responsibility for compensating damages. Indemnity typically involves an agreement to compensate another party for loss or damage, but it does not encompass the broader concept of liability itself. Accountability refers more to a general obligation to explain, justify, or report on actions, while an affidavit is a written statement confirmed by oath or affirmation, not a term related to responsibility for damages. Therefore, liability is the most