This clause says that if one part of the contract is found illegal or unenforceable by a court, the rest of the contract still stands. For example, if a non-compete clause is too strict and a judge strikes it down, the severability clause means the rest of your employment contract remains valid. Without this clause, one bad clause could destroy the entire agreement. This is medium risk because it affects how much of your deal survives if there's a legal problem.
Check what happens if the severability clause itself doesn't work—ask whether the remaining contract still makes sense without the struck-down part. If one clause is critical to your deal, consider negotiating to remove or fix it now rather than risk the whole contract failing later. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause says that if one part of the contract is found illegal or unenforceable by a court, the rest of the contract still stands.
Why should I care about this clause?
For example, if a non-compete clause is too strict and a judge strikes it down, the severability clause means the rest of your employment contract remains valid.
What are my options?
Without this clause, one bad clause could destroy the entire agreement.
How does this affect small businesses?
This is medium risk because it affects how much of your deal survives if there's a legal problem.