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Joint Liability

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Dictionary Says

Definition of 'Joint Liability'

An obligation, including an obligation to repay a debt between two or more parties. A joint liability allows parties to share the risks associated with taking on additional debt, and to protect themselves in the event of legal litigation and lawsuits.
Investopedia Says

Investopedia explains 'Joint Liability'

A joint liability for a debt is the result of two or more parties applying jointly for credit as co-borrowers, which is implied in a general partnership. Under the regulations of a general partnership, any partner entering into a contract with or without the knowledge of other partners automatically binds all partners to that contract.

A co-signer of a loan or another debt obligation also has joint liability for a debt; however, this is contingent upon default by the borrower.

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