Contribution

Uncategorized

Jan 12

When multiple parties enter into contracts, or are involved in any sort of accident, people are often quick to assert blame against the others involved. If several roommates on a lease vacate early or owe the landlord damages, they often point fingers at each other and want to pay no more than they must.

Photo by Ketut Subiyanto from Pexels

But what happens when one party ends up paying more than his or her share? What happens if the landlord is able to collect the entire lease obligation from only one of the tenants?

The answer is what in the law is called a right of contribution. Rights of contribution can arise by contract, where the parties specify how each is to contribute. They also arise by law when no express agreement grants any party a specific right of contribution.

In these instances, where there is no express agreement between the liable parties, the right of one to seek contribution from the other is available if two conditions are met:

  1. Both parties must be liable for the same obligation; and
  2. The party seeking contribution must have paid more than a fair share of the obligation.

The right of contribution is based on principles of equity and fairness, and often enables us to recover for our clients.

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