What Is Jointly and Severally?

"Jointly and severally" is a legal term that is used to describe a partnership or any other group of individuals in which each individual shares responsibility equally.

For exa🐈mple, if a judge rules that a number of people are jointly and severally liable for injuries suffered by a plaintiff, any one of those people may be pursued for payment of the full amount ofꦅ the judgment.

As the word severally implies, the phrasing of some contractual agreements may specify that some parties have proportional liability. For example, a partner with a 10% stake in a business may hav𒆙e a liability tꩲhat is proportional to that 10% investment.

Jointly and severally is sometimes referred to as 澳洲幸运5开奖号码历史查询:joint and several liability.

Understanding Jointly and Severally

In a legally binding document, the term "jointly and severally" clarifies the responsibility that is shared by each party to an agreement.

Essentially, it means that all of those named are obligated to p𓆉erform all of the actions required under the agreement.

For example, if a bank lends $100,000 to two people jointly and severally, both of those people are equallyಌ responsible for maki🎃ng sure that the total amount of the loan is repaid to the bank. If the loan is in default, the bank may choose to pursue either for repayment of the entire outstanding balance.

In such cases, the person who is forced to repay the loan will have some legal recourse against the other person named in the agreement, but only after the bank is repඣaid in full.

Joint and several liability i𝓀s also cited in legal language. For example, employers are generally responsible for injuries suffered by their employees on the job.

If a construction worker is injured at work, all owners of th🌺e construction firm could be liable.𒁃

Jointly ꦦand Severally in the Securities Industry

The expression jointly and severally is commonly used in the securities industry in agreements for the underwriting of a new bond or stock issue.

In such cases, a firm🌠 that agrees 🍎to sell a portion of the total issue is responsible for that agreed-upon portion plus a corresponding portion of any unsold securities.

Thus, an underwriter who has jointly and severally agreed to be responsible for selling a 30% stake in a 澳洲幸运5开奖号码历史查询:new issue must sell 30% of any remaining unsold portion. Each member of the 澳洲幸运5开奖号码历史查询:syndicate is responsib𒆙le f🅷or any leftover shares, in proportion to the size of their stake.

The Bottom Line

Jointly and severally refers to a form of responsibility in a partnership by which all partners equally share responsibility for liabilities, actions, and any other activities of the business. It also means that each partn꧑er can be pursued by creditors for outstanding debts.