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Joint and joint and several liability, in what do they differ?

Joint and joint and several liability, in what do they differ?

Joint and joint and several liability are two forms of liability found in the context of obligations related to debts or the termination of a contract. These differ in how the benefits or burdens are distributed between the parties involved and from whom or in what way to demand compliance with the obligations.

Joint liability occurs when one or more individuals act as debtors or beneficiaries of an obligation that is divided equitably. This implies that, in the event of possible claims by a creditor, the debtors share the responsibility equally, without any of them being able to demand full payment separately.

In contrast, joint and several liability arises when any of the subscribers could be forced to assume the entire debt individually. In a joint and several liability loan or contract, a creditor may require only one of the signatories to make full payment.

The decision between opting for joint or joint and several liability is conditioned by the context and the nature of the contract that is being signed..

For example, on a loan involving multiple people, joint liability might be a more appropriate choice. In this case, each individual is only responsible for their proportional part of the debt.

On the other hand, in a lease with several tenants, joint and several liability could be a more suitable alternative for the lessor. In this context, the landlord can demand full payment of the rent from any of the tenants in the event that one of them does not comply with its payment obligation.

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