Ch.11 Plurality of obligors and of obligees, s.1: Plurality of Obligors, Art.11.1.4
This commentary analyses Article 11.1.4 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning the effects of defences on the relationship between the obligee and the obligors. Under Art 11.1.4, a joint and several obligor against whom a claim is made by the obligee may assert all the defences and rights of set-off that are personal to it or that are common to all the co-obligors. However, the obligor may not assert defences or rights of set-off that are personal to one or several of the other co-obligors. This commentary discusses the common defences that the obligor can assert against the obligee, along with personal defences which involve the right to avoid the contract for mistake, fraud, threat, or gross disparity.