What is a severability provision?

• A. A clause requiring disputes to be settled by arbitration.
• B. A clause that transfers ownership in case of default.
• C. A clause allowing unilateral modification by one party.
• D. A clause stating that if any part of the contract is illegal or invalid, that part will be severed and the remainder of the contract will remain in force.

Answer: (D)

A severability provision is a clause that ensures the contract can still stand even if part of it is illegal or invalid. If one provision can’t be enforced, that portion is severed (removed) and the rest of the agreement remains in force. This protects the overall deal so obligations and rights not affected by the problem continue to apply, and it avoids the entire contract collapsing because of a single faulty provision.

For context, this is about preserving the integrity of the whole agreement rather than about how disputes are resolved, who owns something upon default, or who can change terms. An arbitration clause would address dispute resolution, a clause about transferring ownership on default deals with security or title, and a unilateral modification clause would let one party alter terms without the other’s consent. Severability focuses on what happens if a part of the contract is unenforceable, not on those separate issues.