What is joint and several liability?

Partners in a general partnership are said to be "jointly and severally" liable for the partnership's obligations. This means that each partner may be held legally responsible for the total amount of any partnership debt. A party that brings a claim against the partnership may pursue one or all of the partners. If, as a result of the claim, one partner is forced to repay the debt in full, then that partner may later seek reimbursement against the remaining partners for their share of the debt in a separate proceeding.

Was this helpful? /

Can't find what you are looking for?

Contact us here.