Joint and Several Liability Clause
(TX)

Summary

This joint and several liability clause template may be used in a commercial contract, governed by Texas 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. In Texas, courts have held that two or more parties to a contract may bind themselves jointly, severally, or jointly and severally. See Reeves Cty. v. Pecos River Livestock, Inc., 2000 Tex. App. LEXIS 8750. 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 Tex. Bus. & Com. Code § 3.116. For more information regarding general commercial contract clauses, see Commercial Contract Drafting and Review.