What does the term "contractual liability" refer to?

The term "contractual liability" specifically refers to the legal obligations that arise from the terms outlined in a contract. When parties enter into a contract, they are bound to fulfill specific duties that are stipulated within that agreement. If one party fails to meet their responsibilities, they can be held legally liable for any resulting damages or losses as dictated by the contract's terms.

For instance, if a contractor agrees to complete a project by a certain date and fails to do so, they may be liable for any costs that result from the delay based on the agreed-upon terms. This liability is a key aspect of contract law, where the expectations and obligations are clearly defined, and breaches can lead to legal consequences.

The other options relate to aspects of business operations but do not directly define contractual liability. For example, the obligation to pay subcontractors falls under payment terms but does not encompass the broader legal implications. Construction delays, while they may involve contractual disputes, refer more to project management issues rather than the legalities of contract terms. Similarly, the responsibilities of project managers pertain more to their role in overseeing the project, rather than the legally binding commitments created by the contract itself.