What is a Severability?
A severability clause explicitly states that if one section of a contract is found to be illegal or unenforceable by a court, the rest of the contract still remains valid.
Deep Dive: The Severability
Contracts compile many different terms. Sometimes, a specific non-compete term or liability waiver might violate local laws. Without a severability clause, a judge could void the *entire* contract because of that one illegal sentence. Severability acts as a safety net to preserve the core agreement.
Hidden Risks for Founders
If a severability clause is entirely generic, a court might strike out a clause that was the primary reason you entered the contract in the first place, forcing you to abide by the remaining terrible terms.
Example in a Contract
If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall be enforced.
Legal Enforceability in India
Enforceable in India. Courts invoke the 'Blue Pencil' rule to cross out the offending, illegal text while enforcing the legitimate remainder of the agreement.