Severability


Severability
A clause in a contract that allows for the terms of the contract to be independent of one another, so that if a term in the contract is deemed unenforceable by a court, the contract as a whole will not be deemed unenforceable. If there were no severability clause in a contract, a whole contract could be deemed unenforceable because of one unenforceable term.

Also known as a "severability clause" or a "savings clause".

A contract with a severability clause is essentially one contract divided into many different parts: default on one component of the contract does not prevent the rest of the contract from being fulfilled. If a sentence, clause or term in a contract is deemed invalid by a court, then this problem area of the contract will most often be rewritten to fit both the contract's original intent and the requirements of the court.


Investment dictionary. . 2012.

Look at other dictionaries:

  • severability — the rule of construction of contracts that allows a court to ignore a part of a contract that would render it in some way defective and to read instead what is left. It has been applied to restrictive covenants where, if the words are capable of… …   Law dictionary

  • Severability — In law, severability refers to a provision in a contract which states that if parts of the contract are held to be illegal or otherwise unenforceable, the remainder of the contract should still apply. Sometimes, severability clauses will state… …   Wikipedia

  • severability — noun see severable …   New Collegiate Dictionary

  • severability — See severable. * * * …   Universalium

  • severability — separability …   Glossary of international commercial arbitration

  • severability — n. capability of being severed, capability of being separated or cut off …   English contemporary dictionary

  • severability — sev·er·abil·i·ty …   English syllables

  • severability — The quality of being susceptible to division, leaving parts independent of each other …   Ballentine's law dictionary

  • severability — ˌsev(ə)rəˈbiləd.ē noun : the quality or state of being severable …   Useful english dictionary

  • severability clause — n: a clause (as in a contract) which states that provisions are severable; esp: a clause in a statute that makes the statute s parts or provisions severable so that one part can be invalidated without invalidating the whole – called also… …   Law dictionary


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