Jigsaw piece puzzle

Non-severable: Definition, Example and Related Terms

What is Non-severable ?

A non-severable term in a contract refers to an agreement where the obligations and promises of each party are interconnected to such an extent that they cannot be split or performed separately. This means that the contract must be completed in its entirety, and partial performance is not acceptable. Essentially, if one party fails to fulfill any part of the contract, it affects the entire agreement, and it may lead to the whole contract being considered as breached.

For instance, if a contractor is hired to build a house and install specific features (like plumbing, electrical systems, and roofing), the contract may be considered non-severable. If the contractor fails to install the plumbing, the client might claim that the entire contract has been breached because all parts of the agreed work are interconnected and essential for the completion of the overall project.

Non-severable contracts are often found in comprehensive service agreements, construction contracts, and other large projects where the individual components must work together to achieve the overall goal. Understanding whether a contract is non-severable is crucial, as it impacts how obligations are performed and what happens if there's a dispute or a breach.

An important aspect of non-severable contracts is that they do not include severability clauses, which generally allow for parts of the contract to be severed or removed without invalidating the entire agreement.

Example(s)

  • Scenario Description
    A software company enters into a contract to develop and deliver a customized software package along with training for the client's employees. If the software company delivers the software but fails to provide the necessary training, it may be considered a breach of the entire contract because the training was an integral part of the agreement.
    An artist is commissioned to create a mural for a public space, including both the design and the actual painting. If the artist completes the design but does not finish the painting, the contract could be seen as non-severable, thereby implying a breach of the entire contract.