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 ?
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.
The two Spaniards reluctantly agreed to stay, but only on condition they each had an escape clause written into their contracts.
Fabregas, 19, has agreed a 'sliding scale' contract, which will start off at pounds 40,000 a week - with no escape clauses.
Those who covered up for these monsters, and sometimes even provided them with escape clauses, should also face the full rigours of the law.
Fabregas has agreed a "sliding scale" contract which will start off at pounds 40,000-a-week with no escape clauses.
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.
Owen hasn't even played for them yet and he's still negotiated 5,672 escape clauses. Hmmm...
They had moneyspinning escape clauses written into contracts.
And Ferdinand stressed: "There are no escape clauses, nothing to say that if another club comes in and bids a certain amount of money I must talk to them.
The Scottish side have played it strictly by the book even though O'Neill has an escape clause in his contract.