Joint and several liability clauses
A joint and several liability clause is a contract term stating that two or more parties on the same side are each liable for the full obligation. The other party may then sue any one, some or all of them for the whole amount, subject to not recovering more than what is owed.
How BC law treats it
In BC, such clauses are enforced according to their wording under the general law of contract. Where a contract is silent, obligations undertaken by several parties together are generally presumed joint, not joint and several.
What it means for your business
A BC business should read these clauses carefully before signing alongside partners, co-borrowers or co-sellers.
Risks and common mistakes
Signing without a separate contribution agreement among co-obligors can leave the paying party struggling to recover others' shares.
For the full explanation, see our entry on Joint and several liability.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
