How to Define Severability Clause?

How to Define Severability Clause?

A contract provision that keeps the remaining portions of the contract in force should a court declare one or more of its provisions unconstitutional, void, or unenforceable.

How do you write a severability clause?

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, ...

What is an example of severability?

Severability clauses allow the parties, rather than a court, to decide what happens if a contract provision is unenforceable. For example, a contract for monthly services might provide state that balances not paid within 30 days of invoice are subject to interest at the rate of 18% per annum.

David Miller
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David Miller

David Miller brings 15 years of experience in global economics, personal finance strategy, and market dynamics. He specializes in turning complex economic trends into actionable insights for everyday readers.