Contracts & ExecutionQuestion 884 of 1632

A 'severability' (savings) clause provides that if one provision of the contract is found invalid:

a.The price is automatically reduced by half
b.The entire contract is automatically void
c.The remaining valid provisions continue in effect
d.The invalid provision is enforced anyway

Explanation

A severability clause states that if a court finds one provision invalid or unenforceable, that provision is severed and the remaining valid provisions continue in full effect, preserving as much of the parties' bargain as possible. It prevents a single defective clause from destroying the whole agreement. It does not void the entire contract, resurrect the invalid provision, or automatically cut the price; it isolates the unenforceable term.

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