Which term refers to the legal obligation to restore a loss or damage incurred by one party to another?

The term that refers to the legal obligation to restore a loss or damage incurred by one party to another is liability. Liability arises from various legal duties and can encompass torts, which are wrongful acts that cause harm to others and can lead to civil legal responsibility. In the context of the law, when a party is determined to be liable, they are required to compensate the injured party for the losses they have suffered, therefore restoring them to their previous position as much as possible.

Tort, while closely related to liability, specifically defines a type of civil wrong that leads to harm, and is a category under which certain liabilities fall, rather than being the overarching obligation itself. Conservation generally refers to the protection of environments and resources, and negligence is a specific type of tort that involves a failure to act with reasonable care, leading to another's injury. Therefore, liability captures the essence of the obligation to rectify losses or damages incurred.