Proportionate liability
Proportionate liability is a legal approach under which a defendant’s liability for a loss may be limited to the share attributable to that defendant’s responsibility, where the applicable law permits. The outcome depends on jurisdiction, claim type, evidence and rules governing multiple defendants.
Worked example
A court determines the contributions of an auditor and directors to a loss under a jurisdiction’s applicable liability rules.
Common mistake
Do not assume every jurisdiction applies proportionate liability or that it is identical to a contractual liability cap.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |