severable contract

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Definition

Noun: A severable contract is a single legal agreement that contains multiple, independent promises or parts. If one part is breached (broken), the remaining parts of the contract can still be enforced and remain valid. It is treated as several separate agreements combined into one document.

Usage

A severable contract is used in legal and business contexts to describe an agreement where the obligations are divisible. This concept is important when determining the consequences of a breach. - The contract must be written or interpreted in a way that shows the parties intended for the parts to be separate. - If a court finds a contract to be severable, it can "sever" (cut out) the unenforceable or breached portion while upholding the rest.

Examples
  • The software license was a severable contract, so when the clause about user data collection was ruled invalid, the rest of the licensing terms remained in effect.
  • Because they had a severable contract, the supplier's failure to deliver one component did not allow the buyer to cancel the entire order for all components.
  • The court determined the agreement was a severable contract, allowing it to enforce the payment terms while striking down the overly restrictive non-compete clause.
Advanced Usage
  • Legal Doctrine of Severability: This is the principle that allows courts to preserve the valid portions of a contract. A severable contract is the practical application of this doctrine.
  • Contrast with Entire Contract: An "entire contract" or "indivisible contract" is the opposite. A breach of any part allows the injured party to treat the agreement as broken.
Variants and Related Words
  • Severable (adjective): Capable of being divided or separated.
  • Severability (noun): The quality of being severable.
  • Divisible Contract: A synonym often used interchangeably with "severable contract."
  • Severability Clause: A specific provision in a contract that states if one part is found invalid, the other parts remain enforceable.
Synonyms
  • Divisible contract
  • Separable contract
Antonyms
  • Entire contract
  • Indivisible contract
  • Integrated contract
Noun
  1. a contract which, in the event of a breach by one of the parties, can be considered as several independent agreements expressed in a single instrument