Also known as: bona passivum · passive goods · liabilities
Written by attorneys — see sources below.
Liabilities or debts owed by a person or entity. In Roman law the term denotes obligations that may be enforced against the holder of the corresponding assets.
Brighton Manufacturing issues shares to new investors. A creditor later sues one shareholder for unpaid corporate fuel taxes. The court holds the shareholder has no personal exposure because the corporation alone bears the obligation.
Bobby Brady sues after his delivery van is damaged. He seeks compensation for repair costs and a new loan taken to replace lost income. The court requires him to prove the actual dollar amounts of those obligations before any award issues.
Beacon Bank extends credit to a limited partnership. After default the bank sues both general partners. The court imposes joint and several liability on each partner for the full unpaid balance.
After the settlor dies, Baxter Dynamics, a judgment creditor, seeks payment from trust property. Because the trust remained revocable at death and the probate estate is insufficient, the court subjects the trust assets to the creditor's claim.
Brianna Burke sues two defendants on separate contract and tort counts. The court enters final judgment on the contract claim alone after finding no just reason for delay. The remaining tort claim and all liabilities continue in the district court.
Bruce Baldwin transfers mortgaged property to Blackwood Technologies. After foreclosure the mortgagee sues both transferor and transferee for the deficiency. The court permits recovery against each to the extent of their respective obligations.
It refers to liabilities or debts. The term identifies obligations that stand opposite to assets and may be enforced against the holder of those assets.
Bona activa denotes assets while bona passiva denotes the corresponding liabilities. The two terms together describe the balance sheet of rights and duties under Roman law.
Harm to property, harm to earning capacity, and the creation of new liabilities are economic in nature. Without evidence of actual monetary loss a court will not award compensatory damages for those categories.
General partners are jointly and severally liable for all debts and liabilities of the limited partnership unless the claimant agrees otherwise or a statutory exception applies.
…doubted when the activities of the corporation there have not only been continuous and systematic, but also give rise to the liabilities sued on, even though no consent to be sued or authorization to an agent to accept service of process has been given. St. Clair v. Cox , 106 U. S. 350, 355; Connecticut Mutual Co. v.…