In a divisible contract for the sale of goods, when may a party recover for part of the performance already rendered?

In a divisible contract for the sale of goods, when may a party recover for part of the performance already rendered?

• A. The performing party may recover for the part performed only if the contract is indivisible.
• B. The performing party may recover for the part performed if it substantially conforms.
• C. No recovery is allowed unless the entire contract is performed.
• D. Recovery is allowed only if the other party explicitly consents to the partial performance.

Answer: (B)

Divisible contracts allow recovery for the value of the part actually performed when that portion can stand on its own and is performed in substantial conformity with the agreement. In a sale of goods, if the seller has delivered a portion of the goods and those goods substantially conform to the contract, the seller is entitled to be paid for that part even if the remaining installments are uncompleted or the rest of the contract is not fulfilled. The idea of substantial conformity focuses on the portion that has meaningful value and meets the essential terms; minor defects do not defeat payment for that portion. If the delivered portion deviates in a material way, the other party need not accept or pay for it. This makes sense in a divisible contract because the work is separable into units, each capable of independent performance and value.

Divisible contracts allow recovery for the value of the part actually performed when that portion can stand on its own and is performed in substantial conformity with the agreement. In a sale of goods, if the seller has delivered a portion of the goods and those goods substantially conform to the contract, the seller is entitled to be paid for that part even if the remaining installments are uncompleted or the rest of the contract is not fulfilled. The idea of substantial conformity focuses on the portion that has meaningful value and meets the essential terms; minor defects do not defeat payment for that portion. If the delivered portion deviates in a material way, the other party need not accept or pay for it. This makes sense in a divisible contract because the work is separable into units, each capable of independent performance and value.