Contingent Liabilities

Business, Legal & Accounting Glossary

Definition: Contingent Liabilities

Quick Summary of Contingent Liabilities

Obligations that are not recognised in the balance sheet because they depend upon some future event happening.

What is the dictionary definition of Contingent Liabilities?

Dictionary Definition

liabilities not recorded on a company’s financial reports, but which might become due. If a company is being sued, it has a contingent liability that will become a real liability if the company loses the suit.

Full Definition of Contingent Liabilities

Liabilities that may or may not be incurred by a company and which depend on the outcome of say a forthcoming event such as a court case. These are recorded in a company’s accounts as contingent liabilities.

Synonyms For Contingent Liabilities

contingent liability, contingencies, possible commitments, possible liability, potential liabilities

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Contingent Liabilities. Payroll & Accounting Heaven Ltd. September 25, 2021
Chicago Manual of Style (CMS):
Contingent Liabilities. Payroll & Accounting Heaven Ltd. (accessed: September 25, 2021).
American Psychological Association (APA):
Contingent Liabilities. Retrieved September 25, 2021, from website:

Definition Sources

Definitions for Contingent Liabilities are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 5 Views.