Joint liability will come into existence when two or more people take loan together. They sign the loan agreement as co-signer. Creditor has right to get his loan from one or both together. Both will responsible for repay the loan.
If any one of partner borrowers will do any other agreement with lender, other his or her partner borrowers will bind same new agreement relating to repaying of loan of lender. Total liability of all the partners will be joint liability and if all are unable to repay their obligation, lender can go to court for getting his claim from all of them. He will right to capture of all or any partner borrowers' property for getting his loan amount.
In case death of debt of any party who is included in joint liability contract, other partners will also repay his part of debt.
Joint Liability Vs Severally Liability
There is big difference between severally liability. Severally liability is the liability in which two or more person takes the loan from one financial institute. But in the loan agreement, they write their repayment responsibility. For example, A and B has taken the loan of $ 10,000. A agrees to repay $ 6000 and B agrees to repay $ 4000. This type of liability will be severally liability. If both A and b has fully responsible, then it will be joint liability.
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If any one of partner borrowers will do any other agreement with lender, other his or her partner borrowers will bind same new agreement relating to repaying of loan of lender. Total liability of all the partners will be joint liability and if all are unable to repay their obligation, lender can go to court for getting his claim from all of them. He will right to capture of all or any partner borrowers' property for getting his loan amount.
In case death of debt of any party who is included in joint liability contract, other partners will also repay his part of debt.
Joint Liability Vs Severally Liability
There is big difference between severally liability. Severally liability is the liability in which two or more person takes the loan from one financial institute. But in the loan agreement, they write their repayment responsibility. For example, A and B has taken the loan of $ 10,000. A agrees to repay $ 6000 and B agrees to repay $ 4000. This type of liability will be severally liability. If both A and b has fully responsible, then it will be joint liability.
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