Escape Clause
An "Escape Clause" is a provision in a contract that allows one or both parties to terminate the agreement under specific conditions. This clause provides a way to exit the contract without facing penalties if certain circumstances arise, such as failure to meet obligations or changes in external conditions.
In real estate, for example, an escape clause might allow a buyer to withdraw from a purchase agreement if they cannot secure financing. Similarly, in employment contracts, it may permit an employee to leave if they receive a better job offer. This flexibility helps protect the interests of all parties involved.