How is a contingent liability different from a current or non current liability?

Answer 1

A "contingent" liability is an obligation which may or may not be assumed by the entity. An example: you co-sign a loan for a friend. The debt is theirs but, should they fail to pay, it becomes YOUR liability. Therefore, the debt is contingent upon your friend defaulting.
A current liability is a debt which is due and payable withing one year. A non-current liability is a debt which is due more than 12 months out.
Hope this helps.

Answer 2

Contingent means that there is only a liability if something is not done. Current means that the liability is due now, non current means that it is not currently due (usually more than 90 days out).

An example of a contingent liability could be a contract to do work in exchange for a product if the work is completed there is no liability if the work is not complete there is it is contingent only upon the work being completed.

Forgivable loans based on performance can be a contingent liability.

Answer 3

A contingent liability is the provision for an event which may or may not happen ie; Roof repairs in a hurricane belt, insurance for damaged goods in transit to a customer; replacement of waterline from main to the house. A current liability covers bills for materials purchased due within a due date, say 10 days after receipt and a non current liability would cover % rent payable on gross sales for the lease year.