What term is used for a legal wrong committed that may result in a financial loss to another party?

The term that describes a legal wrong committed that may result in financial loss to another party is "tort." A tort is an act or omission that causes harm or injury to another person or entity and can lead to civil legal liability. Torts can encompass a wide range of situations, including but not limited to negligence, defamation, and assault. In a tort case, the injured party may seek compensation for the damages they have suffered.

Understanding torts is crucial in the field of mortgage lending because they can impact property transactions and legal responsibilities among various parties involved. For instance, if a lender engages in practices that lead to the financial harm of a borrower, the borrower may have grounds to file a tort claim against the lender.

Other options present different legal concepts. A contract violation pertains specifically to breaches of agreements, liability refers to being legally responsible for something, and negligence denotes a specific type of tort where there is a failure to exercise reasonable care. While these terms are related to legal principles, they do not broadly encompass the concept of a legal wrong that may lead to financial loss as thoroughly as "tort" does.