severability

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severability

the rule of construction of contracts that allows a court to ignore a part of a contract that would render it in some way defective and to read instead what is left. It has been applied to restrictive covenants where, if the words are capable of being so read, the court will ignore a severe restriction and allow a lesser restriction. It also applies in cases involving ROMALPA CLAUSES where certain words might render the clause wholly inoperative, the court can, again only if the words are capable of sustaining such a reading, allow the plaintiff some lesser power to trace the goods or their proceeds.
References in periodicals archive ?
(10) However, the Fourth Circuit took a weaker position on the issue, calling the two savings clauses "similar." (11)
The mechanism to determine the allocation between donors and donees did not operate to take property back and was a valid adjustment, not an impermissible savings clause, the court held.
In 1986, the IRS issued a revenue ruling (21) addressing impermissible formula clauses in the nature of savings clauses. In the fact pattern of the revenue ruling, A transferred a one-half undivided interest in real property to B.
(24) Thus, the court held that the provision was valid under IRCA's savings clause and was not preempted under implied field or conflict preemption.
What about the general savings clauses in the securities acts mentioned above?
Of particular importance to fostering innovation and creating incentives for reduced pollution is the preservation of common law regimes through savings clauses and linked floor preemption.
(49.) See Garry, supra note 23, at 241 (addressing ambiguous nature of OPA savings clauses).
Savings clauses are included in documents to prevent an adverse result that otherwise might arise.
Savings clauses that remove the taint of usury are favored by the law and will be given effect if reasonably possible.
In subsequent cases, courts denied "savings clauses" that provided for a portion of a gift deemed subject to gift tax to revert to the donor.
Many states have adopted savings clauses to provide limited liability for LLC members even if the strict formalities of the state statute are not met.