# What Jointly and Severally Means in Legal Terms

![Jointly and Severally: A legal term used to describe a partnership in which responsibility for individual decisions is shared equally by all parties.](https://www.investopedia.com/thmb/03cACgU38Qt4gz-4ZtuM2AjaLMw=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Jointlyandseverally_sketch_final-82c32a7ed73a4b67bfb81de26de69fae.png)

*— Investopedia / Michela Buttignol*

## What Is Jointly and Severally?

"Jointly and severally" is a legal term that is used to describe a [partnership](https://www.investopedia.com/terms/p/partnership.asp) or any other group of individuals in which each individual shares responsibility equally.

For example, if a judge rules that a number of people are jointly and severally liable for injuries suffered by a plaintiff, any one of those people may be pursued for payment of the full amount of the judgment.

As the word severally implies, the phrasing of some contractual agreements may specify that some parties have proportional liability. For example, a partner with a 10% stake in a business may have a liability that is proportional to that 10% investment.

Jointly and severally is sometimes referred to as [joint and several liability](https://www.investopedia.com/terms/j/joint-and-several-liability.asp).

### Key Takeaways

*   The term "jointly and severally" indicates that all parties are equally responsible for carrying out the full terms of an agreement.
*   In a personal liability case, for example, each party named may be pursued for repayment of the entire judgment amount.
*   In some contracts, however, financial responsibility is shared proportionally.
*   Jointly and severally in underwriting means that all firms involved in the underwriting process are responsible for the unsold shares equally.
*   Other forms of liability exist, such as severally, which would indicate that partners are not responsible for the obligations of other partners.

## Understanding Jointly and Severally

In a legally binding document, the term "jointly and severally" clarifies the responsibility that is shared by each party to an agreement.

Essentially, it means that all of those named are obligated to perform all of the actions required under the agreement.

For example, if a bank lends $100,000 to two people jointly and severally, both of those people are equally responsible for making sure that the total amount of the loan is repaid to the bank. If the loan is in default, the bank may choose to pursue either for repayment of the entire outstanding balance.

In such cases, the person who is forced to repay the loan will have some legal recourse against the other person named in the agreement, but only after the bank is repaid in full.

Joint and several liability is also cited in legal language. For example, employers are generally responsible for injuries suffered by their employees on the job.

If a construction worker is injured at work, all owners of the construction firm could be liable.

> **Important**
>
> A partnership agreement, or articles of partnership, helps detail the responsibilities of all the partners to avoid any confusion regarding obligations and other practices and to determine who is responsible when liabilities arise.

## Jointly and Severally in the Securities Industry

The expression jointly and severally is commonly used in the securities industry in agreements for the [underwriting](https://www.investopedia.com/terms/u/underwriting.asp) of a new bond or stock issue.

In such cases, a firm that agrees to sell a portion of the total issue is responsible for that agreed-upon portion plus a corresponding portion of any unsold securities.

Thus, an underwriter who has jointly and severally agreed to be responsible for selling a 30% stake in a [new issue](https://www.investopedia.com/terms/n/newissue.asp) must sell 30% of any remaining unsold portion. Each member of the [syndicate](https://www.investopedia.com/terms/s/syndicate.asp) is responsible for any leftover shares, in proportion to the size of their stake.

## What Does Severally But Not Jointly Mean in an Underwriting?

In underwriting, severally means that members of an underwriting group agree to buy a specific portion of shares but do not agree on joint liability, meaning that they are not responsible for the unsold shares of other members.

## What Are the Disadvantages of Jointly and Severally?

One of the disadvantages of jointly and severally is that it can be unfair to some partners. A partner who has a small degree of responsibility for an action may end up unfairly bearing a large burden of damages caused by other partners.

## What Is Severally Liability?

Severally liability means each partner is responsible for their own obligations rather than being held equally responsible (jointly). If one partner is unable to remedy their obligations, it does not fall on the other partners to do so.

## The Bottom Line

Jointly and severally refers to a form of responsibility in a partnership by which all partners equally share responsibility for liabilities, actions, and any other activities of the business. It also means that each partner can be pursued by creditors for outstanding debts.

> **Article Sources**
>
> 1.  Cornell Law School, Legal Information Institute. "[Joint and Several Liability](https://www.law.cornell.edu/wex/joint_and_several_liability)."