Legal liability losses may be classified by any of several characteristics. One possible classification is in terms of the entities to which liability may indebted: Customers, members off the general public, employees, governmental bodies to which an organization may own fines and possibly others. Another way of classifying liability losses is by the source off the legal duty whose breach has brought legal liability upon the organization: liability for breach of a contract (through intention non-performance or violation of a warranty, for example), tort or criminal liability. Finally, liability losses may be classified according to whether the amounts the firm must pay, or the revenue of which it is deprived, arise from payment off damages or fines to an entity whose legal rights have been violated, payment of legal defence costs, or expenses incurred or revenues lost because of the need to modify or cease a profitable activity.
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That liability which courts recognize and enforce as between parties litigant.