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KembaraXtra – Legal Terms – Indivisible Contract
An indivisible contract is a contract whose obligations must be performed in full before any right to payment arises. The performance cannot be broken into separate parts, and partial performance will not normally entitle the performing party to payment.
This type of contract contrasts with divisible or severable contracts, where obligations can be split and paid for in stages. Indivisible contracts often arise where the parties clearly intend complete performance to be a condition of payment.
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