A contingent liability is a possible obligation, or an existing obligation not recognised as a liability. Recognition may fail because payment is not probable or cannot be measured reliably.
Contingent liabilities can arise from guarantees, claims, disputes, or uncertain events. They are generally disclosed unless the outflow risk is remote.
No balance-sheet amount does not mean no risk. Review the notes for nature, estimated exposure, uncertainty, and possible reimbursement.
This page explains the shared concept. National legal effects may differ. Check official records before acting.
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