Joint and Several Contracts

Joint and several contracts involve two or more parties agreeing to share responsibilities for fulfilling the contract. Each party is individually responsible for the entire obligation, meaning a creditor can pursue any one party for the full amount or performance. This ensures that if one party cannot fulfill their part, the others are still accountable. For example, if friends take out a loan together but one defaults, the lender can seek the full repayment from any one of them, making it important for all parties to understand the risks involved.