There are instances when it is necessary for an agreement to be formalized and legally recognized. These agreements are referred to as contracts. A contract is a verbal agreement that stipulates certain terms and conditions that have been agreed upon by the parties involved in the agreement. These terms and conditions outline an exchange between the parties, a promise of exchange of goods or services. However, different kinds of contracts exist to serve various purposes. Some contracts allow for 2 or more persons to handle the responsibility involved in the contract as a collective or as a group. Such contracts are referred to as a joint contract.
A joint contract is entered into when 2 or more entities agree to hold themselves liable for whatever promises are exchanged in the contract. However, such parties are usually liable as a collective rather than an individual party. For example, a married couple may enter into a joint contract for a mortgage loan. Thus, the husband and the wife are equally responsible for paying for the loan.
It is most common to find joint contracts in the form of lease contracts. Individuals who decide to live together may enter into a join contract with a landlord in order for the people who wish to rent the premises to be legally liable for whatever payments needs to be tendered. The individuals who are legally liable for fulfilling a promise are referred to as the promisors, while the persons entitled to the promises being fulfilled are referred to as the promisees.