Severability Clause: Definition and Example

Having a severability clause in your contracts is crucial for protecting your business interests and ensuring that the contract remains valid even if certain provisions are deemed unenforceable. Legal teams within the Legal Tech & Services industry understand the importance of including a well-drafted severability clause to mitigate risks and streamline contract processes.

What Is Severability Clause?

A severability clause, also known as a savings clause, is a provision in a contract that states that if any part of the contract is found to be invalid or unenforceable, the remaining provisions will still be upheld. This ensures that the contract as a whole remains intact and enforceable.

Why It Matters

• Protects the overall validity of the contract
• Minimizes legal disputes and uncertainties
• Preserves business relationships and trust
• Streamlines contract negotiations and enforcement
• Provides clarity and certainty in case of legal challenges

How Severability Clause Works

When drafting a contract, legal teams can use tools like Certify™ or Predict™ to analyze and benchmark severability clauses against industry standards. By leveraging contract intelligence solutions, such as contract analysis and review platforms, legal professionals can ensure that the severability clause is robust and aligned with the business goals.

Severability Clause FAQs

How does a severability clause protect a contract?

A severability clause protects a contract by ensuring that if any part is found invalid, the rest of the contract remains enforceable.

What happens if a contract does not include a severability clause?

If a contract lacks a severability clause, the entire contract may be deemed invalid if any provision is found unenforceable.

Are severability clauses legally required in contracts?

Severability clauses are not legally required, but they are highly recommended to protect the integrity of contracts.

Can a severability clause be challenged in court?

Yes, a severability clause can be challenged in court, especially if its language is unclear or if it does not align with legal requirements.

How do I know if a severability clause is enforceable in my jurisdiction?

Consult with legal experts or review case law to determine the enforceability of a severability clause in your specific jurisdiction.

What is the purpose of including a severability clause in a contract?

The purpose of including a severability clause is to safeguard the validity of the contract by ensuring that it remains enforceable even if certain provisions are deemed unenforceable.