MBE Rules · Contracts
Divisible Contracts
Divisible contracts
The rule
Where performance is divided into matched pairs of part-performances treated as agreed equivalents, recovery is allowed at the contract rate for completed units notwithstanding breach of others.
In plain English
Divisible contracts are agreements where the performance can be broken down into distinct parts, each of which can be completed independently. If one party fulfills some of their obligations while breaching others, they can still recover payment for the parts they completed successfully.
Worked example
A contractor agrees to build a house in three phases: foundation, framing, and roofing, with each phase priced separately. The contractor completes the foundation and framing but fails to finish the roofing due to a breach of contract. The contractor can still recover the agreed payment for the completed foundation and framing work.
Memory hook
Complete what you can, get paid for what you’ve done!
The trap
Exams may present scenarios where students confuse divisible contracts with entire contracts, leading them to incorrectly assume that a breach of one part negates recovery for completed parts.
How examiners test it
Questions often involve a scenario where one party completes some but not all parts of a contract, requiring students to identify whether the contract is divisible and what recovery is permissible.
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