A contract that consists of multiple promises, each enforceable on its own, is known as what?

• A. Severable Contract
• B. Nonseverable Contract
• C. Executed Contract
• D. Implied Contract

Answer: (A)

This is a severable (divisible) contract. When a contract contains multiple promises that can be performed independently, each promise is enforceable on its own. If one part is breached or cannot be performed, the remaining parts can still be enforced, and remedies may apply to the specific portion without voiding the whole agreement. For example, a contract to provide goods with separate obligations to deliver them and to install them can be treated as severable, with each obligation enforceable separately. This contrasts with nonseverable contracts, where the promises are so interdependent that the entire contract is viewed as a single unit. Executed refers to a contract that has been fully performed, and implied refers to a contract formed by conduct rather than explicit promises.