No it means that if parts of a contract are found to be unlawful or unenforceable, the rest of the contract still holds.
Edit: in other words, you're not legally bound to unlawful parts of a contract.
Edit: in other words, you're not legally bound to unlawful parts of a contract.
However, I also believe that unenforceable parts of a contract have no effect, except in the minds of the parties to that contract. My suspicion is that contracts are sometimes drafted with this in mind.