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Negotiating and Drafting the Severability Provision

Severability Clause

Name: Negotiating and Drafting the Severability Provision
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.65 (278 reviews)

Category:

Contracts - Clauses

State:

Multi-State

Control #:

US-ND1705

Format:

Instant download

Description

This form provides boilerplate contract clauses that outline the level of severability applicable to the terms of the contract agreement and establishing procedures for the possibility that any part of the agreement may be found by a court to be unenforceable. Several different language options representing various levels of severability and various procedures to follow in such an eventuality are included to suit individual needs and circumstances.

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FAQ

What Is Severability?A severability clause in a contract states that its terms are independent of one another so that the rest of the contract will remain in force should a court declare one or more of its provisions void or unenforceable.

A severability clause in a contract allows certain parts to remain in effect even if others are illegal or unenforceable. Severability might refer to certain vital provisions that must be left intact. Severability clauses often contain savings language and reformation language.

If a severability clause appears in a piece of legislation or agreement, it essentially states that the remainder of the document or agreement's terms will remain effective even if one or more clauses or terms are found to be unenforceable by the court, or even illegal or contrary to state or federal laws.

A boilerplate severability clause could take the following form: "If any provision of this Agreement is held illegal or unenforceable in a judicial proceeding, such provision shall be severed and shall be inoperative, and the remainder of this Agreement shall remain operative and binding on the Parties." As so drafted,

In law, severability (sometimes known as salvatorius, from Latin) refers to a provision in a contract or piece of legislation which states that if some of the terms are held to be illegal or otherwise unenforceable, the remainder should still apply.

The severability clause helps parties determine and then address the needs of all parties in different likely scenarios. For example, the non-compete clause of a contract of sale of a business may be invalidated by a court.The non-compete clause may also be essential to the nature of the transaction.

A severability clause provides that if any part of an act is held unconstitutional, the remainder shall not be affected. It is a type of saving clause in that it "saves" parts of an act if any other parts of the act are declared unconstitutional by court action.

Severability Clause

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