Define: Divisible Contract

Divisible Contract
Divisible Contract
Quick Summary of Divisible Contract

A divisible contract is a legally enforceable agreement between multiple parties that can be divided into smaller parts, each with its own obligations. This allows for enforcement of the remaining parts even if one part is not fulfiled. For instance, if a contract requires the delivery of 100 items, it can be divided into smaller portions, such as delivering 10 items at a time. This type of contract is also referred to as a severable contract.

Full Definition Of Divisible Contract

A divisible contract is a contract that can be broken down into smaller parts or obligations. Each part of the contract can be performed and enforced separately, without impacting the validity of the other parts. This means that if one part of the contract is breached, the other parts can still be enforced. For instance, a construction contract can be considered divisible as it can be divided into smaller parts like foundation work, framing, electrical work, plumbing, etc. If the contractor fails to complete the electrical work, the owner can still enforce the other parts of the contract and hire another contractor for the electrical work. Similarly, a contract for the sale of goods can also be divisible. If a buyer agrees to purchase 100 units of a product, the contract can be divided into smaller parts like the delivery of each unit. If the seller fails to deliver one unit, the buyer can still enforce the contract for the delivery of the remaining 99 units. In summary, a divisible contract can be divided into smaller parts or obligations, each of which can be performed and enforced separately without affecting the validity of the other parts.

Divisible Contract FAQ'S

A divisible contract is an agreement that can be divided into separate parts or obligations, each of which can be performed independently. This means that if one part of the contract is breached or becomes impossible to perform, the other parts can still be enforced.

In an indivisible contract, the obligations are interdependent, meaning that the failure to perform one part of the contract would result in a breach of the entire agreement. In a divisible contract, each part can be treated as a separate contract, allowing for independent enforcement.

Yes, a divisible contract allows for independent enforcement of each part. If one part is breached, the non-breaching party can seek remedies for that specific part without affecting the enforceability of the other parts.

Yes, if one part of a divisible contract becomes impossible to perform, it does not automatically render the entire contract void. The non-breaching party can still seek remedies for the other parts that are still enforceable.

Whether a contract is divisible or indivisible depends on the intention of the parties involved. It is usually determined by examining the language and terms of the contract, as well as the nature of the obligations.

Yes, a divisible contract can be modified or amended, but the modification or amendment would only apply to the specific part being modified. The other parts of the contract would remain unaffected.

If one part of a divisible contract is illegal, it may be considered void or unenforceable. However, the other parts of the contract that are legal and enforceable can still be upheld.

Yes, a divisible contract can be assigned or transferred, but the assignment or transfer would only apply to the specific part being assigned. The other parts of the contract would remain with the original parties.

Yes, a divisible contract can be terminated by mutual agreement between the parties. However, the termination would only apply to the specific part being terminated, and the other parts would remain in effect.

If one party breaches multiple parts of a divisible contract, the non-breaching party can seek remedies for each breached part separately. The non-breaching party may be entitled to damages or specific performance for each breached part.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 16th April 2024.

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