Among the legal privileges of corporations, two that are mentioned in textbooks are the right to sue and the “right” to be sued. Who wants to be sued! But the right to be sued is the power to make a promise: to borrow money, to enter a contract, to do business with someone who might be damaged. If suit does arise, the “right” seems a liability in retrospect; beforehand it was a prerequisite to doing business.

DEFINE: Recasts a legal 'liability' as a functional prerequisite for contracts and business.

Thomas C. Schelling, The Strategy of Conflict, loc. 113