Unlimited Liability Law and Legal Definition

Unlimited Liability is full liability for the debt and other obligations of a legal entity. The general partners of a partnership have unlimited liability. In such type of investment a partner or investor can lose an unlimited amount of money. It is opposite of limited liability. Whereas, limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability.