joint debtor

'Now, in point of law, it is not to be disputed that a release to one of several joint debtors releases them all.

Chapter 7 Individual or Joint Debtor No Asset Case (12/11)

If it has that effect, it is not disputed that the rule of law applies, namely, that the release of one of two joint debtors has the effect of releasing the other.

It is merely a contract between the creditor and the joint debtor which does not affect the liabilities of the other joint contractors or their rights of contribution or indemnity against their co-contractor.

It is a question of construction of the contract between the creditor and joint debtor in the light of the surrounding circumstances whether the contract amounts to a release or merely a contract not to sue.

It is clear that, although a document in terms purports to release one of two joint debtors, yet it may contain in terms a reservation of rights against the other joint debtor.

If this legal consequence had been pointed out to the bank at the time, they might have said that that was not what they intended, but that is a factor common probably to all cases in which a release is given to one of two joint debtors.