Severability: Difference between revisions

}}{{t|Profound ontological uncertainty}} writ large.  If ''one'' aspect of my {{t|contract}} is illegal, what does that mean for the rest of it?  

This is really a way of looking at the question of [[illegality]], the general proposition for which is that a {{t|contract}} which obliges its participants to do illegal things is void and unenforceable as a matter of pubic policy.

So if you hire an assassin to kill your spouse and the assassin takes your money but fails to, don’t expect [[Queen’s Bench Division|her majesty’s courts]] to grant you [[damages]], much less the [[Courts of chancery|courts of equity]] to award [[specific performance]].

Straightforward enough. But still, hypotheticals fester, at least in the minds of [[Mediocre lawyer|assiduous draftspeople]] the world over. What if only a ''teeny'' little bit of it is [[Illegality|illegal]]? Can I still get on with the rest of it? And if, otherwise, not, will it help if I say in my contract that any bit which later becomes illegal — or even turns out to have been illegal the whole time — doesn’t somehow count any more, so I can carry on with the rest of it?  

So, firstly, an illegality speaks to some serious misapprehension on the parties’ part as to the legitimacy of what they are agreeing to do. Even if their enterprise was kosher when they agreed it, we must presume, giving their intelligence the benefit of the doubt, that they didn’t seriously expect a country’s commercial courts to continue to uphold an enterprise that its criminal courts would put people in jail for.  

This misapprehension might be fundamental enough to undermine their [[Consensus ad idem|meeting of minds]] in the first place — in which case, what value a [[severability]] provision? — but even if it is not, it will be quite the stroke of luck if the lost ''benefit'' from the illegal, severed, part of the contract falls equally between the parties.  

Odds are, that is to say, that the severance will favour one party over the other, in a way that, logically, they cannot predict before it happens.  

Say I have agreed, for a monthly fee of ten pounds, to provide you with five services, one of which later transpires to be illegal. The other four services remain valid, as does your obligation to pay me the agreed monthly retainer. So is the contract simply severed to cut out the illegal service? Must you now pay me ten pounds for ''four'' services?

Equity says there should be some adjustment of the commercials; as we didn’t have a crystal ball, resolving this at the outset of a contract, with a [[severability]] clause seems cavalier. Yet this is what this boilerplate seems to do.

I know I keep banging on about complexity, but if there were ever a better example of forlornly trying to cater for a complex world with simple rules, this is it. Face facts: you are going to have to figure it out at the time. That such a prospect might give the heebie-jeebies to [[internal audit]], and the poor sap in [[compliance]] whose job it is to police the organisation’s [[risk taxonomy]], is an added frisson that some of you might find strangely ''satisfying''. I know I do.

If the choice is between blindly allocating unforeseeable losses at the start of the relationship with a [[severability]] clause, and hoping the parties can be adult enough to come together in good faith to sort out a compromise as and when the unforeseeable becomes a reality later — trusting each other, in other words, to [[Be a good egg|be good eggs]] and [[Non mentula esse|not dicks]] — then the [[JC]] knows where he’d rather be, and who he would rather be trading with.