Liability

In foreign trade terminology, 'Liability' refers to the legal consequences that a contracting party must bear due to breach of contract, tort, or legal provisions, typically manifested as compensation for losses, payment of fines, performance of obligations, etc. Usage scenarios include sales contracts, transport contracts, insurance contracts, and letter of credit transactions, especially when there is cargo damage, delayed delivery, payment default, or intellectual property infringement, where clarifying liability attribution is crucial. Precautions: 1) The scope of liability should be specifically agreed upon, such as whether direct losses and indirect losses are included; 2) Liability limits (e.g., maximum compensation per unit of goods) must be clear; 3) Exemption clauses (force majeure) may affect the determination of liability. Distinction from other terms: 'Liability' emphasizes adverse legal consequences, while 'Obligation' is the act that should be performed, and 'Risk' refers to the possibility of loss occurring. Foreign trade practitioners should allocate and avoid liability through contract clauses (such as liability limitation, indemnity, exemption).