Severable Contract Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Severable Contract, written in plain English, along with examples of how it is used.

What is Severable Contract?

(n) Severable contracts are the contracts between two person, which are independed of each other , the failure of implementation of one agreement will not affect the implementation of the other

History and Meaning of Severable Contract

A severable contract, also known as a divisible contract, is a contract that consists of multiple parts or obligations. Each part of the contract is independent of the others, meaning that if one part is breached or unenforceable, it does not affect the rest of the contract.

Severable contracts have been recognized and enforced by courts for centuries. The idea is based on the principle of freedom of contract and allows for greater flexibility and efficiency in commercial transactions.

Examples of Severable Contract

  1. A construction contract for a new office building, which includes separate sections for plumbing, electrical work, and roofing. If the roofing contractor fails to deliver, the rest of the contract can still be enforced.
  2. A software development agreement that separates the development of different modules into separate stages. If the developer is unable to complete one stage, the rest of the contract is still valid.
  3. A contract for the sale of a car, which includes separate clauses for payment, delivery, and warranty. If the buyer fails to make payment, the seller can still enforce the delivery and warranty clauses.

Legal Terms Similar to Severable Contract

  1. Entire Contract - a contract in which the parts or provisions are interdependent and cannot be performed independently.
  2. Divisible Obligation - an obligation that can be divided into distinct parts, each of which can be performed independently.
  3. Independent Contractor - a person or entity that provides services to another under a contract, but is not an employee or agent of the other party.