What is a severability clause?
A severability clause is a legal provision found in contracts that states if one particular part of the agreement is found to be unenforceable or invalid, the other terms and conditions of the contract remain in place. In Arizona, this clause may be included to protect companies or individuals from having to face complete contract termination in the event that one of the parties violates a minor condition of the agreement. The purpose of a severability clause is to ensure that an entire contract is not rendered invalid if one portion is rendered void due to a violation that does not significantly impact the intent of the original agreement. Courts in Arizona will normally enforce the remaining parts of the contract if the contract features a severability clause. In Arizona, such clauses may be especially important for business contracts that involve multiple parties, as they can protect the rights of the other parties if one of the parties breaches the agreement. For example, if a contract for the purchase of goods includes a severability clause and one of the purchaser’s payment terms is found to be invalid, the other terms and conditions of the agreement may still be enforced. It is important to note that a severability clause will only provide protection if the clause is specifically written into the contract and the situation is addressed in the clause. Therefore, it is important that agreements include a clear severability clause that covers all of the terms and conditions of the agreement.
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