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severable contract definition

an agreement which is made up of several separate contracts between the same parties, such as series of sales, shipments or different pieces of equipment. Therefore, breach of one of the separate (severable) contracts is not a breach of the remainder of the overall contract and is not an excuse for the other party to refuse to honor any divisable part of the contract which has not been breached. Example Whitley Widget Company has contracted with Hardy Hardware to deliver a dozen wall heaters, one ton of nails, 100 rolls of linoleum and a truckload of roof tiles, with a price set for each type of product. Whitley no longer produces nails and cannot deliver them, but the other parts of the contract remain in force between Whitley and Hardy.

See also breach of contract contract
 
 
 
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