CONTINGENT LIABILITY

a liability that only accrues if uncertain facts/circumstances occur at some future time.

For instance, in a contract to sell a business, the seller will incur a contingent liability in the event that the purchaser gets sued for the seller’s negligent acts [in operating the business].

Congratulations! You're now Froogled Up™ on what "Contingent Liability" means!

Feel free to use it throughout your financial/insurance life.

Sincerely,

www.FroogleMe.com