Severability Clause
Also known as: Savings Clause, Separability Clause
A provision stating that if any part of the contract is found to be unenforceable or invalid, the rest of the contract remains in effect.
Detailed Explanation
A severability clause means that if a court strikes down one provision of the contract (for example, finding an arbitration clause unconscionable), the rest of the contract stays intact.
Without a severability clause, an unenforceable provision could potentially void the entire contract. Severability prevents this by treating the contract as a collection of independent provisions.
For buyers, severability is generally a positive feature — it means that even if a court invalidates a problematic clause, the rest of your purchase agreement (including the builder's obligations to construct and sell the home) remains enforceable.
In Your Contract
Look for "severability," "savings clause," or language stating that "if any provision is held invalid, the remaining provisions shall continue in full force and effect." Usually near the end of the contract.
Key Points
- 1Severability keeps the rest of the contract valid if one provision is struck down.
- 2It is generally beneficial for both parties.
- 3Without it, an invalid clause could void the entire agreement.
- 4Most builder contracts include a severability clause.
- 5It can affect how courts handle challenges to specific contract provisions.
Related Content
Have a new construction contract? Scan it for $49 at fineprint.homes
Scan Your Contract