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 ?
Colletti agreed with Drew's claim that Drew never explicitly told him he wouldn't exercise the escape clause.
The Santa Clause 3: The Escape Clause lets fans of the hit film franchise experience the fun of taking on the role of the big man in red in order to save Christmas," said Craig Relyea, vice president of marketing, Buena Vista Games.
01 would, after all, have activated Hughes' escape clause, but they are on the brink of a coup over a brace of West Midlands rivals.
Arsenal believed they had triggered an escape clause in the 26-year-old's previous contract when they offered PS40,000,001 ([euro]50m) in the summer, but Liverpool said their understanding with Suarez was not contractual.
United, who have agreed a 15 million pound transfer fee with Aston Villa for Ashley Young, believed they had secured England Under-21 international Jones to a five-year deal after triggering his escape clause on Tuesday by offering in excess of 16 million pounds for the player.
However, Tommy has an escape clause for his BB behaviour and will answer his critics by saying he was merely complying with a task and not compromising his long-held, hardline views one iota.
I wouldn't want an escape clause and I wouldn't ask for an escape clause.
Bullard is poised to make a shock move to the Cottagers, thanks to his agent notifying other clubs of an escape clause in his Wigan deal.
He has an escape clause in his contract and then is backed into a corner to join them and they adore him.
Arsenal made a bid of PS40m plus PS1 last week, in the belief it would trigger an escape clause in his contract, but they also expected Suarez to push for an arbitration hearing to pave the way for a move.
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.
Bruce is fighting to stay in the Premiership and as a result McCormack would agree a contract with an escape clause if Wigan are relegated.