Joint And Several Liability
Joint and several liability is when multiple parties involved in a business transaction can be held liable for compensation to a plaintiff upon a specific event. In this case, the plaintiff can receive compensation from one or more liable parties.
In certain website sale transactions, joint and several liability may be included in a purchase agreement such that either party can receive compensation from multiple parties on the other side of the table. This could occur if one liable party may not be able to afford to fully compensate the other party. Thus, each liable party is responsible for up to all of the liability compensation.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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