SU 2 Chapter 9 - Multi-party obligations Flashcards
(9 cards)
What are multi-party obligations?
Where obligations exist between more than one debtor or creditor.
What are the 3 types of multi-party obligations?
Simple co-debtor/creditor
Joint co-debtor/creditor
Joint and several co-debtor/creditors
What is a simple co-debtor relationship?
Debtors agree to pay a debt, and all of them are liable for an equal portion.
What is a simple co-creditor relationship?
Where each creditor is entitled to an equal portion of a debt.
What is a joint co-debtor relationship?
When full amount of debt must be claimed jointly from all of them. They are liable for the same debt whereas simple they are held liable separately.
What is a joint co-creditor relationship?
Where creditors must claim the full amount jointly.
What is a joint and several co-debtors relationship?
Every debtor held liable for full amount, but if one performs full amount, all of them are freed.
What happens if creditor releases one of the debtors in in a joint and several co-debtor relationship?
Other debtors will be liable for the full amount minus amount for which that debtor would have been liable for if they were liable for a pro rata share. (based on % of how much each one owes)
What happens if solidary co-debtor only performs part of the whole debt in a several co-debtor relationship?
The other debtors will be liable for remainder, nut if creditor claims lesser amount from him, and he pays he will be freed.
