JOINT & SEVERAL LIABILITY
Other Names: Joint Liability • Several Liability • Several Obligations • Joint Obligations • Several, Not Joint, Obligations
Sample Clause Language:
THE OBLIGATIONS OF [CO-OBLIGORS] HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH [CO-OBLIGORS] CONFIRMS THAT IT IS LIABLE FOR ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER [CO-OBLIGORS] HEREUNDER.
Source: Corporate Office Properties, L.P. (2020, May 8). Form 10-Q. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Joint & Several Liability clauses identify how co-obligors will be liable for obligations under the agreement and whether the obligee can go after one or all of the obligors. The sample clause here is drafted to be very favorable to the obligee. This clause provides for joint and several liability, which means that the co-obligors are responsible for the entirety of the same obligation and the obligee can sue any obligor for full performance.
Common Contracts with this Clause:
- Asset Purchase Agreements
- Stock Purchase Agreements
- Merger Agreements
- Stockholders Agreements
- Loan Agreements
- Promissory Notes
- Guaranty Agreements
What you'll see with Lawgood:
Three (3) Alternative Positions
- Favorable to Obligor
- Favorable to Obligee
- Very Favorable to Obligee
Draft better contracts with Lawgood.