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 ?
Also, the Fourth Circuit restricted the use of the savings clause in the CAA by holding that affected states could not enforce their common law nuisance rules against stationary sources in other states.
Under a savings clause, if the value of a gift as finally determined is greater than the value originally claimed, the donee is required to issue a promissory note to the donor to reduce the value of the gift to the amount originally claimed.
The Court has not always been clear about the interplay between section 502 and the express preemption provisions discussed above (the preemption clause, savings clause and deemer clause).
The Supreme Court affirmed the Ninth Circuit and held that the Act is not impliedly or expressly preempted by federal law because it fits within IRCA's savings clause.
What about the general savings clauses in the securities acts mentioned above?
The CAA harnesses state action in numerous ways, offering states the option of implementing the statute under delegated program provisions, preserving their ability to be more protective of their citizens and the environment through savings clauses and floor preemption provisions.
the condition imposed could not become operative, since it required a final judgment and all matters of the agreement including the savings clause would be merged in the final judgment.
The standardized language of [section]5 of the note is the usury savings clause, and reads in full as follows:
The courts have not been supportive in the use of savings clauses.
Taxpayers have turned to savings clauses to establish the value of property transferred between related parties.
2014), the easement included a savings clause that provided that the parties could not agree to any amendments that would result in the conservation easement failing to qualify for a deduction under [section]170.