Joint and several guarantees
A joint and several guarantee is a guarantee given by two or more guarantors, each of whom can be required to pay the creditor the full guaranteed amount if the borrower defaults. Sharing of the burden happens only between the guarantors afterwards, through the right of contribution.
How BC law treats it
In BC, a guarantee is unenforceable unless evidenced by a writing signed by the guarantor, or the guarantor has done an act showing a guarantee was made (Law and Equity Act, RSBC 1996 c 253, s. 59(6)). Signature by the creditor or all parties is not required.
What it means for your business
Business owners who co-sign guarantees for company loans or leases should assume they may each have to pay the full debt.
Risks and common mistakes
Assuming liability is limited to a proportionate share can lead a guarantor to badly underestimate personal exposure.
For the full explanation, see our entry on Guarantee.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
