escape clause

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escape clause

A clause that allows one party or the other to cancel a contract without penalty upon the happening of certain described events or conditions.The most common ones in real estate are the ability to cancel a purchase contract if the buyer cannot secure acceptable financing or if the buyer cannot sell his or her own home.

References in periodicals archive ?
The two Spaniards reluctantly agreed to stay, but only on condition they each had an escape clause written into their contracts.
These guys are signed up to 2009/10, the club is financially sound and there are no escape clauses, so they will not be going anywhere.
O'Neill will take backroom staff John Robertson and Steve Walford to Celtic Park but neither have escape clauses and a deal will have to be negotiated with Leicester.
The county will negotiate a five-year lease, but will insist on escape clauses in case the county cannot afford to lease the aircraft.
He has agreed a 'sliding scale' contract, which will start off at pounds 40,000 a week - with no escape clauses.
Owen hasn't even played for them yet and he's still negotiated 5,672 escape clauses.
They had moneyspinning escape clauses written into contracts.
The Scottish side have played it strictly by the book even though O'Neill has an escape clause in his contract.