Most business owners are very aware of the length and complexity of most commercial contracts. As with any document, the longer it is, the more likely it is to contain a mistake. Thus, you must consider how your company can avoid harm from the erroneous wording of a commercial agreement. This article will explore the use of a severability clause within a commercial contract and how it can help your company survive any linguistic errors.<\/p>\n\n\n\n
Firstly, let us consider what a commercial agreement is. Broadly speaking, this is a legally binding agreement between two businesses summing up the essential points within a commercial deal.<\/p>\n\n\n\n
For example, many commercial contracts will see one business promise a specified sum of money in exchange for the other delivering goods or performing a service.<\/p>\n\n\n\n
Commercial agreements tend to record valuable deals, so the contract must remain enforceable to the highest degree possible. <\/p>\n\n\n\n
Severability clauses<\/a> (or \u2018severance clauses\u2019) aim to ensure that the remaining provisions of a commercial contract remain binding on the parties if a small part of it is erroneous. Thus, if one particular clause is unenforceable, it will not automatically make the entire contract unenforceable.<\/p>\n\n\n\n Accordingly, a good severance clause aims to persuade a judge to strike through any invalid provision but leave the remainder of the contract in place. Most businesses are happy with this approach, as it usually seems harsh to strike out an entire 25-page agreement for the sake of a single provision being wrong.<\/p>\n\n\n\n However, as with all contractual clauses, severability clauses are not infallible but merely help the odds of the specified outcome occurring. With all of this in mind, let us consider some advantages of severability clauses below.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n