It’s not uncommon for more than one person to guarantee the repayment of a loan to a bank (or other financial institution). If that loan is not repaid the bank often has a contractual right to pursue one or more of the guarantors (without having to pursue all of the guarantors). The result could be that one guarantor ends up repaying all or a majority of the debt.
The solution - the right to contribution
The recent High Court case of Lavin v Toppi  HCA 4 reminds us that as between the guarantors there is a right for contribution. This means that a guarantor who pays more than another guarantor can pursue the other guarantor for an equal contribution. In this case:
The High Court held that the guarantors were entitled to contribution which had the effect requiring each guarantor to pay an equal amount to NAB. Interestingly: