Accountancy, asked by attbhangu8410, 1 year ago

What does direct/indirect liability mean?

Answers

Answered by Ashq
2
Hey, ✋ there your answer is ______,

answer...

⏩Direct liability is in which intervening factors are involved that reduce the responsibility of the liable party for the harm or damages in question.

⏩Indirect liability refers to legal liability imposed on an entity which is facilitating an infringement of another's rights, particularly of intellectual property rights, but not accruing benefit (or loss) from the infringement.

✔ Hope it may helps u ...!!! ☺
Answered by arshikhan8123
0

Answer:

Direct Liability-

  • Anyone who personally causes harm or injury to another person or property is directly liable and must pay for the damage.

Indirect Liability-

  • A potential obligation that may arise under certain conditions is referred to as an indirect liability.

Explanation:

Direct Liability-

  • A person who throws a stone and breaks a window, for example, is directly responsible to the owner of that window.
  • A direct liability is the inverse of an indirect liability in that a person or company becomes liable as a result of another person's or company's act or omission.

Indirect Liability-

  • An entity has an indirect liability when it is a secondary obligor on a liability where another party is the primary obligor.
  • The entity will be held liable only if the primary obligor fails to meet its payment obligations.
  • A secondary liability can also exist when an event, such as an unfavourable outcome to a lawsuit, may occur in the future that will trigger an obligation.

Hence, we can conclude that a direct liability is easy to identify as compared to an indirect liability.

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