Which type of contract involves multiple persons being bound both jointly and individually?

The type of contract that involves multiple parties being bound both jointly and individually is known as a Joint and Several Contract. In this arrangement, each party is responsible for the entire obligation, as well as being collectively responsible with the other parties involved. This means that if one party fails to fulfill their part of the contract, either the other parties can be held liable for the entire obligation, or the creditor can pursue any one of the parties for the full amount owed.

This type of contract is often utilized in agreements where collaborative responsibilities are shared but also recognizes the individual liabilities of participants. For instance, in a loan agreement among multiple borrowers, the lender can seek full repayment from any one of the borrowers, providing a layer of security for the lender. This structure can enhance accountability among the parties involved in a contract.

In contrast, a Joint Contract involves all parties being liable together but does not allow for individual liability, while a Several Contract binds each party independently, with no joint responsibility. A Partnership Agreement does establish a relationship among multiple parties but is specific to business arrangements and does not specifically carry the same terminology regarding joint and several liabilities.