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 ?
But if the Black Cats go down today, it is believed Jones will be able to activate a pounds 6m escape clause which makes him a much more attractive sign-infor Premier League clubs.
Pompey boss Harry Redknapp raided relegated Leicester City with a pounds 100,000 bid for the left-back which activated an escape clause in Thatcher's contract.
On Jacobsen's ideal platform, an absolute architectural morality prevails--there can be no mistakes and no excuses, no afterthoughts and no escape clauses, about the siting of the individual components of the scheme.
Such lists have no escape clauses for the dozens of interruptions that occur every day.
He said the Republican plan contains ``extremely vague language and includes escape clauses that could extend the trial into the indefinite future.
The 28-year-old twins signed six-year contracts with the Dutch giants last year but had escape clauses inserted.
Multilateral agreements tend to be larded with complications, half-measures, and escape clauses.
Third, Northland's proposed supply agreement is filled with escape clauses.