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a) Joint liability: disadvantages
i) Only one action is available, and if judgment proves unsuccessful or if a party
is omitted from the action, further actions are barred.
ii) No right of set off exists against credit private accounts, even on
determination of the joint mandate.
iii) Death of one joint- account party completely releases his estate. (securities
deposited by the deceased to secure the joint account would also probably be
released, but the bank expressly retains rights against the security by including
a clause “money owing by survivors on joint account”
iv) If a joint account party becomes bankrupt proof can be lodged against his
estate without losing the right of recovery from the solvent parties.
b) Joint and several liability (referred to as J&S. liability)
Advantages
i) There is a right of action against all parties severally and successively until the
whole debt is recovered.
ii) A right of set-off exists between credit private accounts and the joint overdraft
on determination of the mandate (or as otherwise agreed or after giving
sufficient notice).
iii) Death does not release the estate of the deceased for doubt owing on joint
account.
iv) Proof may be logical the estate of a bankrupt joint account party and rights
retained against the solvent parties.
NatalieR answered the question on February 22, 2022 at 08:46
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