What is a divisible contract law?

: a contract containing agreements one of which can be separated from the other so that one part may be valid or enforceable although another is void or so that a right may accrue on one and not on another.

What is divisible and indivisible contract?

An obligation is divisible when the object of the performance is susceptible of division. An obligation is indivisible when the object of the performance, because of its nature or because of the intent of the parties, is not susceptible of division.

How do you know if a contract is divisible?

To define a divisible contract, it is a contract in which the duties to be performed by the participating parties are divided into matching pairs such that both parties consider the duties to be equal. The duties in each pair exist and can be performed independently.

What is indivisible contract?

Definition of Indivisible contract: Type of contract where obligations of the contracting parties are interdependent, and no party can demand performance from the other(s) unless it performs its own part or is ready and willing to do it. Also called entire contract.

Can a contract be divisible?

A divisible contract is a contract in which the parties’ performances are divided into matching pairs of duties to perform that the parties consider equal. Divisible contracts are similar in concept to installment contracts.

What is divisible contract example?

An example of a divisible contract would be a smoothie company that utilizes contracts with vendors to secure their orders for fresh fruit. The contract is created between the company and the vendors and is as follows: For the first month, the company will purchase 500 bushels of Gala apples at a rate of $7 per bushel.

What is a signed contract called?

An executed contract is a legal document that has been signed off by the people necessary for it to become effective. The contract is often made between two or more people, but it can also be between a person and an entity, or two or more entities. Some contracts even require the signatures be witnessed.

How does the court treat a divisible contract?

The rule with divisible contracts is that a party that performs one or more parts of the contract is entitled to collect the contract price for those parts even if he breaches other parts of the contract.

Is an employment contract divisible?

If it is divisible, the contract, for certain purposes, is treated as though it were a number of contracts, as in employment contracts and leases. If an employer hires a prospective employee for one year at a weekly salary, the contract is divisible.

Is a void contract a contract?

A void contract is a formal agreement that is effectively illegitimate and unenforceable from the moment it is created. A void contract differs from a voidable contract, although both may indeed be nullified for similar reasons. A contract may be deemed void if it is not enforceable as it was originally written.

When a contract is unenforceable?

An unenforceable contract or transaction is one that is valid but one the court will not enforce. Unenforceable is usually used in contradiction to void (or void ab initio) and voidable. If the parties perform the agreement, it will be valid, but the court will not compel them if they do not.

What is a divisible contract example?