Contract Glossary
Joint and Several Liability
Definition
When two or more parties are each individually responsible for the full amount of a debt or obligation, not just their share. A creditor can collect the entire amount from any one party, regardless of that party's actual share of fault.
In Practice
Say three partners owe a vendor $90,000 under a contract with joint and several liability. The vendor doesn't have to chase each partner for $30,000, they can collect the full $90,000 from whichever partner has the deepest pockets. That partner then has to go after the other two for their shares. If you're the solvent one, you're the target.
Common in these contract types
Related contract clauses
Frequently asked questions
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