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.
What are divisible and indivisible obligations?
What is an indivisible contract?
a contract that depends on fulfilling one parties’ obligations before the parties can continue onto the next stage.
What is divisible contract in 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 the purpose of 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.
What is an example of a divisible contract?
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 are the characteristics of joint divisible obligations?
When a joint obligation is divisible, each joint obligor is bound to perform, and each joint obligee is entitled to receive, only his portion. When a joint obligation is indivisible, joint obligors or obligees are subject to the rules governing solidary obligors or solidary obligees. Acts 1984, No.
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.
How does the court treat a divisible contract?
What is divisible contract example?
What are the effect of joint obligation?
The non-performance of one of the debtors in a joint obligation necessarily has an effect on the obligation as a whole. It follows that the creditor can terminate for fundamental nonperformance even if the non-performance is imputable to only one of the debtors.