The failure to do something which a reasonable person would do in a particular situation, or doing something which a reasonable and prudent person would not do in similar circumstances. If an injured person proves that another person acted negligently and caused their injury, they can recover damages to compensate for their injury.

The responsibility of a person to pay a debt or other financial obligation. If an individual signs a promissory note, that individual usually has full personal liability for the debt. An exception is the unusual situation of a non-recourse individual loan, in which the lender agrees to look only to the collateral for recovery in the event of default.