What is the test for determining whether a contract is divisible?
Saskatchewan, Canada
The following excerpt is from Commonwealth Drilling Company v. Community Petroleums Limited, 1951 CanLII 189 (SK CA):
I think the contract is governed by the principles laid down in Mosseau v. Tone (1907) 7 Terr LR 369, 6 WLR 117. In 7 Halsbury, 2nd ed., pp. 334, 335, it is laid down as follows: “Contracts are indivisible where the consideration is one and entire, or where it is stated or can be gathered by necessary inference that no consideration is to pass from one party until the whole of the obligations of the other party have been completed; but where no such intention can be gathered, and the contract resolves itself into a number of considerations for a number of acts, as in the case of periodical payments for a number of services which do not form one complete whole, the contract is divisible.”
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