DEFINITION OF TERMS:

Jointly Liable

When two people are jointly liable, each is individually liable for whatever debt or

obligation they have together. For example, if spouses both sign for a mortgage

loan, they are jointly liable for the amount of the loan. Thus, if one spouse passes

away, the other is liable for any remaining amount. When two partners are jointly

liable for a debt and a creditor sues one partner and receives the full amount, the

creditor does not have a right to later sue the other partner.

Severally Liable

Several liability is the opposite of joint liability. When two or more partners obtain

a loan for which they are severally liable, each partner is only liable for their own

obligation. For example, if three business partners co-borrow money for their small

business and the loan agreement states that they are only severally liable, the

lender may only sue the partner who fails to fulfill his obligation.

Joint and Several Liability

When two or more partners have joint and several liability for a debt, a creditor

may sue any one of the partners. If a creditor recovers money from one partner,

that partner may pursue the other partners for their respective share of obligation.

In other words, it becomes the responsibility of the partner who was initially sued

to recover from the other partners for their contribution. For example, if three

business partners enter into a contract for which there is joint and several liability -

- and the contract is subsequently breached -- one of them may be sued and may

end up paying all damages. It is then that partner's responsibility to pursue the

other partners for their share of the liability.

Joint And Solidary Obligation or Solidary Obligation.

A "solidary obligation" corresponds to a "joint and several" obligation iu the

common law; that is, one for which several debtors are bound in such wise that

each is liable for the entire amount, and not merely for his proportionate share.

But in the civil law the term also includes the case where there are several

creditors, as against a common debtor, each of whom is entitled to receive the

entire debt and give an acquittance for it.