Joint and Several Liability Clause
(CO)

Summary

This joint and several liability clause may be used in a commercial contract, governed by Colorado law, to specify whether an obligation imposed on two or more parties is joint, several, or joint and several. This template includes practical guidance and drafting notes. An obligation is joint when each of the obligors is responsible and may be compelled to render the entire performance. An obligation is several when each obligor is responsible only for their individual promise. Under Colorado law, all joint obligations and covenants are considered joint and several obligations and covenants. See Colo. Rev. Stat. § 13-50-101. Also, if two or more persons have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers, they are jointly and severally liable in the capacity in which they sign, except as otherwise provided in the instrument. See Colo. Rev. Stat. § 4-3-116(a). For more information regarding more general commercial contract clauses, see Commercial Contract Drafting and Review.