Define: Contribution

In law, contribution refers to the principle that allows multiple parties who are jointly liable for a legal obligation or debt to share the responsibility for paying it. This concept commonly arises in situations involving tort liability or contract disputes where two or more parties are found to have contributed to the same harm or breach. Contribution ensures that each party pays their fair share of the damages or obligation, proportionate to their level of fault or involvement. It provides a mechanism for equitable distribution of liability among the responsible parties, promoting fairness and preventing one party from bearing the entire burden of the loss or obligation.

1. Payment to an annuity or retirement plan.
2. Mortgage: A term that can have several meanings in the context of insurance. A contribution can be the portion of a loss paid by each insurer, when the same loss is covered by two or more insurers. Or the term can mean the portion of a premium paid by the insured. The term can also mean the portion of the loss paid by the insurer under coinsurance.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.