Severability

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Severability

A clause in a contract stating that if one clause in the contract is ruled illegal or unenforceable, the remainder of the contract remains in effect. Severability exists to protect the counterparties to the contract from the possibility that the whole contract will be ruled invalid. This is especially important if one or both parties must spend money in the execution of the contract. A contract without a severability clause could be declared entirely invalid if a single section is declared invalid. It is also called a savings clause.
References in periodicals archive ?
With a savings clause, the donor attempts to take back property if the property is later revalued.
Justices dissenting cited that the law does not fit the savings clause and that the Everify mandate is preempted because "by making mandatory that which federal law seeks to make voluntary, the state provision stands as a significant obstacle to the accomplishment and execution of the full purposes and objectives of Congress.
1995), the court states that a usury savings clause is proper "[w]here the transaction is not clearly usurious at the outset but only becomes usurious upon the happening of a future contingency, [because] the clause may be determinative on the issue of intent.
The absence in either leading bill of a new broad cross-cutting climate regulation savings clause and lack of opening findings or policy declarations applauding state climate regulation opens the door for preemption claims when a state chooses to act in a new and innovative way.
errors fell within the scope of the savings clause.
6) The Aviall I court harmonized that interpretation with the savings clause in 113(f)(1) (7) by concluding that Congress intended the savings clause to preserve a "party's ability to bring contribution actions based on state law.
The savings clause says "nothing in this title shall be construed to exempt or relieve any person from any law of any State which regulates insurance, banking, or securities.
contract doctrine, thereby striking a blow to the savings clause of
A savings clause is void because it creates a scenario in which the taxpayer tries to take property back, whereas a formula clause merely transfers a fixed set of rights with uncertain value.
The Supreme Court has recognized that even if a state law is "saved" pursuant to the savings clause, 29 U.
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