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 ?
75) Unless well-drawn savings clauses were included, congressional legislation could expose the patchwork quilt of state-level RPS to preemption challenges.
131, 141-42 (2013) ("Although the Supreme Court has generally interpreted savings clauses to preclude any finding of express preemption, it has 'decline[d] to give broad effect to saving clauses where doing so would upset the careful regulatory scheme established by federal law.
the CWA's two savings clauses did not speak directly to the issue
two savings clauses together to mean that a state may impose more
In 1986, the IRS issued a revenue ruling (21) addressing impermissible formula clauses in the nature of savings clauses.
Perhaps more important to latitude and incentives for innovation are the CAA's savings clauses and floor preemption strategies.
Council leader Phil Fowlie said: "In principle, the council and the Crown Estate, as landowners, should have the right to call upon the savings clauses to develop their land.
Eugene and Springfield councilors and Lane County commissioners discuss savings clauses, revision of metro plan to allow replacement of temporary Interstate 5 Glenwood bridge.
Many states have adopted savings clauses to provide limited liability for LLC members even if the strict formalities of the state statute are not met.
Taxpayers have turned to savings clauses to establish the value of property transferred between related parties.
The mechanism to determine the allocation between donors and donees did not operate to take property back and was a valid adjustment, not an impermissible savings clause, the court held.
The marital deduction may be protected by clearly stating the intent to qualify for it and including a savings clause in the trust document.