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Commercial Terms

Severability

Also called: Severability Clause · Savings Clause

A severability clause provides that if one provision of a contract is found invalid or unenforceable, the remainder stays in force. Without it, a single defective clause can, in some circumstances, put the enforceability of the wider agreement in question.

In more detail

Severability matters most in contracts containing provisions with genuine enforceability risk — non-competes, liquidated damages, broad indemnities. These are precisely the clauses most likely to be challenged, and severability contains the damage if one fails.

Stronger drafting goes further than simple deletion: it asks the court or tribunal to read down the offending provision to the extent necessary to make it enforceable, rather than removing it entirely. For a non-compete, the difference between a narrowed restraint and no restraint at all is substantial.

The clause should also acknowledge its own limit — if severing a provision would fundamentally change the commercial bargain, the parties usually agree to renegotiate in good faith rather than continue on materially altered terms.

What our lawyers check

  • Whether the clause allows reading down, or only deletion
  • Whether it covers partial as well as complete invalidity
  • Whether removal of a core provision triggers renegotiation
  • How it interacts with the highest-risk clauses in the specific contract

Contracts where this clause matters

Related terms

This definition is general information about commercial contracting practice, not legal advice. How a clause operates depends on the specific wording of your agreement and the law that governs it. For advice on your contract, have it reviewed by a lawyer.

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