Legal liability is a term applied to being legally responsible for a situation, and is often associated with a contract, especially if the terms of that contract are not fulfilled. In the US, state law often determines the question of liability, after it is applied to certain facts of a case. In some cases, liability may be subject to interpretation by an individual such as a judge, or group of individuals, as in the case of a jury. In cases where the facts are disputed, responsibility becomes a more difficult question.
In most cases, the question of legal liability is a question of civil law, rather than criminal law. If a person fails in his contractual obligations, those who have been wronged may decide to seek a legal remedy. In such cases, the court must agree that responsibility for the situation legally rests with the defendant. Once this is done, an award amount will be set, most likely based on the actual damages and possibly based on punitive damages as well.
To establish liability, several things must be proven. First, it must be proven that the person the plaintiff wants held accountable is the actual party in the contract. Second, it must be proven that the individual did not fulfill a portion of the contract. This failure may or may not be based on ability, depending on the situation. In most cases, the person with the responsibility must at least have the ability to meet the terms of the contract.
