severable contract

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Related to severable contract: Divisible contract
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  • noun

Words related to severable contract

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

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References in periodicals archive ?
With contracts that are nonseverable, and severable contracts when amounts are due before the performance is complete, the right to income is fixed no later than when payment is due, the IRS asserts.
* "[F]or Taxpayer's severable contracts, the amounts allocable to each severable portion of a contract are fixed no later than when performance of the severable portion is complete";
For severable contracts, if performance of the severable portion is complete before the right to bill arises, then the taxpayer's right to income for such service is fixed upon completion of performance of the severable portion.