Contingency

Categories: Regulations

See Contingent Liability.

Related or Semi-related Video

Finance: What is Contingent Liability?4 Views

00:00

Finance allah shmoop what is contingent liability All right you

00:08

know what a liability is right It's a debt it's

00:11

a promise you've made that you need to fulfill teo

00:14

pay someone and fulfilling it can be done with cash

00:18

or ah promise of delivering inventory or after you've sold

00:23

the home to the joneses An interesting family with oddly

00:26

large foreheads you know delivering good title to the home

00:31

to them right So you're fulfilling liability of producing your

00:35

home so what's a contingent liability Well think of it

00:38

is a call option or a put option on a

00:41

security A contingent liability is a derivative of some other

00:46

underlying being like another liability Well the most common contingent

00:51

liability would be a filed lawsuit that is more than

00:54

just an ambulance chasing securities lawyer hoping to get a

00:58

quick five hundred grand to go away google might be

01:01

willing to pay three billion dollars toe by ring That

01:04

wireless doorbell company started by some weirdo contingent upon ring

01:09

properly defending its lawsuit from honeywell which claims that they

01:14

own the patents on the process while the financial outcome

01:17

of that lawsuit is a contingent liability to the company

01:22

Ring and the outcome of the joneses moving into town

01:25

well is a worldwide dominance and the enslavement of all

01:28

human I mean that's what's at stake their people But 00:01:31.39 --> [endTime] not least they keep their front lawn looking nice

Find other enlightening terms in Shmoop Finance Genius Bar(f)