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Severability
(redirected from Severability clause)

   Also found in: Wikipedia 0.01 sec.
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.


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Importantly, the court likewise noted that the act itself contained a severability clause which clearly indicated that any stricken provisions would not invalidate the act as whole.
If the plaintiffs win, all of Sarbanes-Oxley could be at risk, since the law has no severability clause that would allow a court to throw out only parts of it.
The ballot measure has a severability clause, meaning restrictions on small donors would survive if the court overturned restrictions on wealthy donors.
 
 
 
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