escape clause

American  

noun

1. a provision in a contract that enables a party to terminate contractual obligations in specified circumstances.

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escape clause British  

noun

1. a clause in a contract freeing one of the parties from his obligations in certain circumstances

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Etymology

Origin of escape clause

First recorded in 1940–45

Example Sentences

See Examples For:

escape clause

Deep in a $1 trillion pay package approved by Tesla’s shareholders is an escape clause that could pay off for Elon Musk in several ways if he folds the automaker into his SpaceX empire.

From The Wall Street Journal ● Aug. 11, 2026

Through the Maastricht escape clause, countries can increase defense spending by up to 1.5% of GDP per year, amounting to as much as €500 billion in aggregate.

From MarketWatch ● Feb. 17, 2026

It did have an escape clause that allowed the US to nix the deal if Afghan peace talks failed.

From BBC ● Mar. 19, 2024

There was only one problem: The deal spanned 12 years and had no escape clause late in the term, according to a source.

From Seattle Times ● Aug. 5, 2023

But Howard added an escape clause: Pollard would ride only if he was fit to do so.

From "Seabiscuit: An American Legend" by Laura Hillenbrand