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Joint and Several Liability

Liability of more than one person for which each person is liable to pay back the entire amount of a debt or damages.

Osborne's Concise Law Dictionary:

"An obligation entered into by two or more persons, so that each is liable severally, and all liable jointly, and a creditor or obligee may sue one or more severaly, or all jointly, at his option."

Stripped of legalese, it means together or separately, permitting a creditor to collect or exact from any of the joint and several debtors the total payment due or ful performance.

If three friends, A and B (two persons with few assets), and C, who is wealthy, borrow $10,000 from Z and agree to be joint and severally liable for the full amount, and they then default on the loan, Z can sue and collect the full amount against all three or against C only, not having to worry about collecting from A and B (that would then be C's problem in private actions for contribution from A and B).

REFERENCES:

  • Woodley, M, ed., Osborne's Concise Law Dictionary, 10th Ed. (London: Sweet & Maxwell, 2005), page 228.

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Unless otherwise noted, this article was written by Lloyd Duhaime, Barrister, Solicitor, Attorney and Lawyer (and Notary Public!). It is not intended to be legal advice and you would be foolhardy to rely on it in respect to any specific situation you or an acquaintance may be facing. In addition, the law changes rapidly and sometimes with little notice so from time to time, an article may not be up to date. Therefore, this is merely legal information designed to educate the reader. If you have a real situation, this information will serve as a good springboard to get legal advice from a lawyer.

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