What is Secondary Liability? Simple Definition & Meaning

Definition of Secondary Liability

Secondary liability refers to the legal responsibility that arises from the original or primary liability. This type of liability is only applicable when the party with primary liability fails to fulfill their obligation.

For example, if a person borrows money from a bank and fails to repay the loan, the bank may hold the person's co-signer or guarantor liable for the debt. In this case, the co-signer or guarantor has secondary liability for the loan.

In another example, a company may be held liable for the actions of its employees. If an employee causes harm to someone while on the job, the company may be held responsible for the employee's actions. This is an example of secondary liability.

Overall, secondary liability is a legal concept that holds parties accountable for the actions or obligations of others. It is important to understand this concept in order to avoid potential legal issues and protect oneself from liability.

Simple Definition

Secondary Liability: When someone else is responsible for something, but they can't or won't do it, someone else might be responsible instead. This is called secondary liability. For example, if a company makes a product that hurts someone, they have primary liability. But if they can't pay for the damage they caused, someone else might have to pay instead. This is secondary liability.

Legal Definitions - Secondary Liability

Definition of Secondary Liability

Simple Definition