[sev-er-uh-buh
l, sev-ruh-] 
| 1. | capable of being severed. |
| 2. | Law. separable or capable of being treated as separate from a whole legal right or obligation: a severable contract obligation. |
| sev·er·a·ble (sěv'ər-ə-bəl, sěv'rə-) adj. Capable of being severed or separated; separable into legally distinct rights or obligations, as a contract. sev'er·a·bil'i·ty n. |
Severability
A clause in a contract that allows for the terms of the contract to be independent of one another, so that if a term in the contract is deemed unenforceable by a court, the contract as a whole will not be deemed unenforceable. If there were no severability clause in a contract, a whole contract could be deemed unenforceable because of one unenforceable term.
Also known as a "severability clause" or a "savings clause".
Investopedia Commentary
A contract with a severability clause is essentially one contract divided into many different parts: default on one component of the contract does not prevent the rest of the contract from being fulfilled. If a sentence, clause or term in a contract is deemed invalid by a court, then this problem area of the contract will most often be rewritten to fit both the contract's original intent and the requirements of the court.
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See also: Default, Futures, Option, Options Contract