What is another term for a severable contract?

A severable contract is one in which the terms can be divided into separate parts or obligations, each of which can be performed independently. The correct term for this kind of contract is a divisible contract. In a divisible contract, if one party fails to perform one part, it does not necessarily invalidate the entire agreement. Instead, the non-breaching party may still be able to enforce the parts of the contract that have been performed or are still performable.

This concept is important for understanding how obligations are structured in contracts. For example, in a divisible contract for the sale of goods or services, each delivery or service provided can be seen as a separate obligation. If a party breaches one aspect, only that portion of the contract is at stake, which helps mitigate risks and provides clarity in enforcement.

In contrast, the other options represent different types of contracts but do not align with the concept of severability. For instance, a concurrent contract relates to obligations that occur at the same time and does not imply division of tasks. An installment contract involves a series of payments or deliveries but does not inherently indicate that the contract's obligations are severable. Lastly, a fixed contract typically refers to one where the terms and prices are set without variations and does not