1 : to determine by agreement or litigation the precise amount of
: to settle (a debt) by payment or other adjustment
2 a : to determine the liabilities and apportion the assets of esp. in bankruptcy or dissolution [ a corporation] compare bankruptcy
b : to convert (as assets) into cash [ an estate]
: to liquidate something (as a corporation)
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.