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Severability clauses: their importance for contracts

A severability clause is a boilerplate provision that sets out the parties' intention that any invalid or unenforceable provision(s) shall be severed from an agreement, so that the remainder of the agreement continues to be valid and enforceable. So, rather than treat the entire contract as unenforceable, a severability clause is the expression of the parties’ agreement that the contract shall remain valid and binding on the parties, but without the “offensive” provision, as long as the contract is capable of expressing the primary commercial deal of the parties without the problematic clause.  It should be noted, though, that a severability clause cannot obviously save an agreement that is tainted, for example, as an illegal provision of financial assistance, but it might be helpful in preventing the whole contract being invalid if, for example, the interest provision was held to be a penalty, or the arbitration agreement included therein was held by a court as invalid. For this r

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