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.
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 the difference between a divisible and indivisible contract?
DIVISIBLE CONTRACT-That the legal parts can be performed separately, the legal parts of the contract are enforceable. If a contract is indivisible illegality in one part of it renders the whole contract invalid. If the contract is divisible the legal parts of the contract are enforceable.
What is the meaning of indivisible in law?
INDIVISIBLE. That which cannot be separated. 2. It is important to ascertain when a consideration or a contract, is or is not indivisible. When a consideration is entire and indivisible, and it is against law, the contract is void in toto.
What is divisible performance?
June 23, 2016 No Comments on Divisible Performance. A contractual performance that is physically possible to render in separate units, such as when selling two cars at the same time. It should also be the parties’ intention to regard the performances as divisible.
What is divisible and indivisible?
Art. 1815. Divisible and indivisible obligation. 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 is a divisible joint obligation?
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.
What are divisible obligations?
A divisible obligation is one the object of which, in its delivery or performance, is capable of partial fulfillment. For example, A agreed to pay B Php4,000 in two equal monthly installments for his debt. Here, the obligation of A is divisible because it is capable of partial performance.
What is a divisible project?
Divisible projects are those projects that can be accepted or rejected partly.
What is indivisible obligation example?
In indivisible obligation, the object is not capable of partial performance. For example, A agreed to sing B a birthday song for Php50. 00. The object in their contract is not capable of partial performance.
What is the difference between indivisible obligation and solidary obligation?
If there is breach in indivisible obligation, the debtor guilty of breach shall be the only one liable whereas in a solidary obligation, all of the debtors shall be liable if they are guilty of breach.
What are the 3 kinds of indivisibility?
Indivisibility is established by the common agreement of the parties, by the nature of the object of the obligation and by law. Annotators call these kinds of indivisibility conventional, natural or absolute and legal indivisibility.
What is legal indivisibility in law?
Legal indivisibility – where a specific provision of law declares as indivisible, obligations.
What is non divisible project?
Non-divisible projects are those that can only be accepted or rejected wholly. They are the opposite of divisible projects. Therefore, a company cannot take non-divisible projects partly.