If parties have joint liability, then they are each liable up to the full amount of the relevant obligation. So if a married couple takes a loan from a bank, the loan agreement will normally provide that they are to be "jointly liable" for the full amount. If one party dies, disappears or is declared bankrupt, the other remains fully liable. Accordingly, the bank may sue all living co-promisors for the full amount. However, in suing, the creditor has only one course of action; i.e., the creditor can sue for each debt only once. If, for example, there are three partners, and the creditor sues all of them for the outstanding loan amount and one of them pays the liability, the creditor cannot recover further amounts from the partners who did not contribute to the liability.
Read more about this topic: Joint And Several Liability
Famous quotes containing the word joint:
“I conjure thee, and all the oaths which I
And thou have sworn to seal joint constancy,
Here I unswear, and overswear them thus,
Thou shalt not love by ways so dangerous.
Temper, O fair Love, love’s impetuous rage,
Be my true Mistress still, not my feign’d Page;
I’ll go, and, by thy kind leave, leave behind
Thee, only worthy to nurse in my mind
Thirst to come back;”
—John Donne (1572–1631)