Joint and Several Liability Explained

Joint and several liability means two or more people share a liability, but each can be responsible for the full amount.

This explanation focuses on England and Wales.

Lowdown

The creditor is the person or business owed the money. If a debt is jointly and severally owed, the creditor can pursue any one of those liable for the whole unpaid balance, not just that person's expected share. However, the creditor cannot recover more than the total amount owed.^[1]

Why It Matters

The risk is simple: if another liable person cannot pay, you may have to cover more than the share you expected.

A common example is a joint tenancy, where tenants are usually jointly and severally liable for rent and damage under the tenancy.^[2]

Do not assume every shared liability works this way. For example, general partners are jointly liable for ordinary partnership debts under the Partnership Act 1890, while the Act uses joint and several liability for certain wrongs.^[3]

If you pay more than your share, you may be able to seek repayment from others who share the liability. Whether you can recover the money depends on the circumstances. For example, a joint tenant may be able to claim unpaid rent from another tenant, while the Civil Liability (Contribution) Act 1978 deals with people responsible for the same damage.^[4][5]

Our Conclusion

Joint and several liability can expose you to the full amount, not just your expected share. Check exactly what the clause or legal rule covers before accepting the risk.

Sources

[1] The Insolvency Service, Debt Relief Orders: Guidance for debt advisers – Joint and several liability

[2] The Insolvency Service, Technical guidance for Official Receivers: Jointly owned tenanted property

[3] Partnership Act 1890, section 9: Liability of partners and section 12: Liability for wrongs joint and several

[4] Civil Liability (Contribution) Act 1978, section 1: Entitlement to contribution

[5] Shelter, Joint tenant liability for rent