What provision of a sales contract eliminates unlawful terms?

The provision in a sales contract that eliminates unlawful terms is known as the severability of terms. This clause plays a crucial role in maintaining the integrity of a contract by ensuring that if one part of the agreement is found to be illegal or unenforceable, the remainder of the contract can still remain valid and enforceable. This helps prevent the entire contract from being invalidated due to a single problematic provision.

In essence, severability allows the parties to uphold their intentions and the enforceable aspects of their agreement, thereby safeguarding the overall contractual relationship. It ensures that lawful terms can proceed without being affected by any illegal or noncompliant terms.

The other provisions mentioned have different functions: a force majeure clause addresses unforeseen circumstances that prevent fulfilling the contract, an indemnity clause deals with compensation for loss or damage, and an entire agreement clause asserts that the written contract represents the complete and final agreement between the parties, excluding prior negotiations or agreements. While these provisions are important for various reasons, severability specifically deals with the elimination of unlawful terms within a contract.