The general rule is that where an obligation is joint and several, the release of one of two joint debtors has the effect of releasing the other, but: ‘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. Where you find those two provisions you construe the document, not as a release, but merely as an undertaking not to sue a particular individual, and the result is that the right to proceed against the co-debtor is reserved and can be put in force against him. Whenever you can find from the terms of the document an agreement for the reservation of rights against the co-debtor, then, I agree, the document cannot be construed as an accord and satisfaction of the joint debt, and, therefore, as a release of the co-debtor.’
Judges:
Collins LJ
Citations:
[1901] 2 KB 642
Jurisdiction:
England and Wales
Cited by:
Cited – Matthews v Pournasrollahzadeh and Another CA 9-Mar-1998
The tenant fell into arrears, and discussed a surrender with the landlord. It had been intended that the landlord would waive any arrears, but he then claimed that there had been an implied surrender by law, and that the arrears remained.
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 12 May 2022; Ref: scu.187716