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 ?
APPENDIX: ADMINISTRATIVE SEVERABILITY CLAUSES BY AGENCY
Agencies tend to include severability clauses in their rules
Of course, courts can disregard such severability clauses, perhaps
To illustrate this vagueness problem of the severability clause,
To achieve maximum coverage, conduct exclusions should be limited to apply only after final adjudications, and should contain severability clauses ensuring that the bad acts of one individual insured will not bar coverage for other innocent insureds.
Such a severability clause will protect innocent defendants in the event that several individual insureds are named defendants in a lawsuit arising out of one individual's fraudulent or dishonest acts.
Elizabeth Garrett, a law professor at the University of Southern California, said severability clauses are common, although the factors in the decision to add one can be complex and are based on both strategic and political as well as legal concerns.
Severability clauses are common-so common, in fact, that they are sometimes regarded as boilerplate.
Public comments; liquor license application of the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians; Eugene-Springfield metropolitan area general plan; Eugene-Springfield public facilities and services plan; savings and severability clauses.
Detailed severability clauses are essential in global contracts to ensure that if any particular terms are unenforceable in the international forum, they do not invalidate the global contract as a whole.
The courts' doctrine on administrative severability clauses, however, does not share Chevron/Skidmore's incentive structure.
The court held that severability clauses in the policies precluded rescission as to all insureds regardless of their involvement in the alleged fraud.