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 ?
59) Moreover, because Alaska Airlines adopted a presumption of severability, and the absence of a severability clause does not affect that presumption, it is unclear what work, if any, the insertion of a severability clause in a statute does.
that the lack of a severability clause does not create a presumption
Of course, courts can disregard such severability clauses, perhaps
Most often, a severability clause is written into a law so that intent is clear.
A successful challenge to the legitimacy of the board, combined with the lack of a severability clause, could potentially bring about the demise of the entire Sarbanes-Oxley Act and the investor protections it sought to establish.
Furthermore, the severability clause allowed him to perform emergency services within the area; and the employer was allowed to stipulate that the employee could treat certain cases within the prohibited area.
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.
After quoting a severability clause applicable to the statute, (120) the Court of Appeals held that the exemptions for homeowners and property owners associations did "not affect the other provisions of the act"--those under which the defendant had been convicted--and severed them from the statute.
The ballot measure has a severability clause, meaning restrictions on small donors would survive if the court overturned restrictions on wealthy donors.
The essence of the suit is that by having the members of the Public Company Accounting Oversight Board appointed by the Securities and Exchange Commission, SOX violates the Constitution's appointments clause, if the courts agree, the whole law would fall because it lacks a severability clause.
A severability clause expresses the drafters' intent to preserve parts of a campaign finance law that are found constitutional even if other parts are invalidated.