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 ?
However, the provisions allowing severability of insurance should be removed as a final step.
8) Partly for this reason, the Court has stated that congressional intent is the primary focus of severability and statutory-interdependence analysis.
The Court rejected the Florida Supreme Court's distinction between void and voidable contracts in refusing to apply Prima Paint's rule of severability.
SEVERABILITY AS TO THE APPLICATION: This provides that if the signer of the application and/or any warranties made a material misstatement or misrepresentation which induced the carrier to issue the D&O policy, that individual's misstatement or misrepresentation will not void the coverage for all other insureds.
Supreme Court could take into account in evaluating the severability of
Wine and bread are known from ancient times, and they both have travelled through the social severability, political systems and cultural changes and seen the transformations of their meanings, yet they are still somehow appreciated as the essence of being alive.
62) The Court's federal arbitration jurisprudence imposes a severability rule so that the existence of an arbitration clause--even in a fraudulent, illegal, or unconscionable bargain--leaves determinations of the bargain's validity for arbitration, not the courts.
Additionally, the court will consider the issue raised by the NFIB and the states regarding the severability of the individual mandate from the remainder of PPACA.
See, if the mandate--even by itself- is ruled unconstitutional, the law's lack of a severability clause would invalidate the entire piece of legislation.
In another recent article, Kevin Walsh has recently dissented from the analysis of severability that I have given in section III.