Concurrent liability: Overview, definition and example
What is concurrent liability?
Concurrent liability occurs when a party is simultaneously liable under multiple legal principles or contracts for the same act or failure to act. This means the responsible party can be held accountable in more than one way at the same time for the same incident, such as being both in breach of contract and committing a tort (a wrongful act causing harm) at the same time.
Why is concurrent liability important?
Concurrent liability is important because it ensures that a party is held accountable from different legal angles when appropriate. This can provide more avenues for a party seeking compensation or enforcement. It also helps clarify that a single act or failure can lead to multiple types of legal responsibility.
Understanding concurrent liability through an example
Imagine a construction company that fails to deliver a building project on time, causing both a breach of contract and property damage. The construction company may face concurrent liability: one for not meeting the contract terms and another for the damage caused to the property.
In another case, a company sells defective goods that harm customers. The company might face concurrent liability for breaching its sales contract and for negligence, leading to the same event being actionable under multiple legal frameworks.
Example of a concurrent liability clause
Here’s how a concurrent liability clause might look in a contract:
“The parties acknowledge that any breach of this Agreement may also give rise to liability under other legal theories, including but not limited to tort, and that such concurrent liabilities may be pursued independently or together.”
Conclusion
Concurrent liability highlights that a party may be held accountable in multiple ways for the same action or failure. Understanding this concept allows businesses and individuals to recognize the full scope of legal responsibilities they may face and the potential consequences.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.