Contingent Liability

Business, Legal & Accounting Glossary

Definition: Contingent Liability

Full Definition of Contingent Liability

Contingent liabilities are liabilities that may or may not be incurred by a company and which depend on the outcome of a forthcoming event such as a court case. These are recorded in a company’s accounts as contingent liabilities under accounts payable. Such liabilities are not shown in the balance sheet, usually, a footnote is appended at the balance sheet for such liability.

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 Liability. Payroll & Accounting Heaven Ltd. September 28, 2021
Chicago Manual of Style (CMS):
Contingent Liability. Payroll & Accounting Heaven Ltd. (accessed: September 28, 2021).
American Psychological Association (APA):
Contingent Liability. Retrieved September 28, 2021, from website:

Definition Sources

Definitions for Contingent Liability 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: 18th April, 2020 | 3 Views.