Contract Liability

Contract liability refers to the legal responsibility that parties have when they enter into a contract. When one party fails to fulfill their obligations as outlined in the agreement, they may be held liable for any damages or losses that result from that breach. This means that if you promise to do something in a contract and don’t follow through, you could be required to compensate the other party. Essentially, contract liability ensures that agreements are taken seriously and provides a way for affected parties to seek redress for unfulfilled promises.