Legal Definitions - solidary liability

Solidary liability occurs when multiple individuals or entities are responsible for the same debt or obligation, and each one is individually liable for the entire amount owed.

This means that the party to whom the debt is owed (the creditor) can demand full payment from any single one of the responsible parties, rather than having to collect a specific portion from each. The chosen party then typically has the right to seek reimbursement or contribution from the other responsible parties for their respective shares.

• Example 1: Business Loan Co-Signers

  Imagine three business partners, Alice, Bob, and Carol, who take out a loan from a bank to fund their new startup. The bank requires them to sign the loan agreement with solidary liability.

  If the business struggles and defaults on the loan, the bank has the option to pursue Alice for the entire outstanding balance, even though Bob and Carol are also legally responsible. Alice would then be obligated to pay the full amount to the bank and would subsequently need to seek reimbursement from Bob and Carol for their respective portions of the debt.

• Example 2: Joint Rental Lease

  Consider three roommates, David, Emily, and Frank, who sign a lease agreement for an apartment. The lease explicitly states that they are solidarily liable for the rent.

  If Frank decides to move out unexpectedly halfway through the lease term and stops paying his share of the rent, the landlord can demand the full monthly rent payment from either David or Emily, or both, not just the missing portion that Frank was supposed to pay. David or Emily would then be responsible for ensuring the full rent is paid and would have to pursue Frank themselves to recover his share.