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- escape clause - A section of a contract allowing a participant to avoid a commitment if a specific instance arises
A section of a contract allowing a participant to avoid a commitment if a specific instance arises. How to use "escape clause" in a sentence. The construction contract included an escape clause in case of natural disasters.
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What is an escape clause?
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An escape clause is a contractual provision that absolves one party to the contract of performance under specific conditions. An escape clause relieves one party of liability for nonperformance if certain conditions are met. Insurance policies frequently contain escape clauses.
Definition: An escape clause provides a legal way for parties to end or adjust a contract if certain conditions are met. Purpose: Offers flexibility, mitigates risks, and ensures fairness in contractual relationships.
An escape clause, commonly known as an 'exit provision,' is a contractual term that allows one or both parties to legally terminate or modify the agreement under specific circumstances.
May 24, 2024 · escape clause. noun. : a clause in a contract that allows a party to avoid liability under the contract for specified reasons. especially : a provision in an insurance policy that denies coverage when other insurance covers the risk.
May 16, 2024 · An escape clause is a clause in a contract which allows a party to break the contract without penalty under certain situations. Escape clauses are designed to prevent people from feeling like they are forced into complying with a contract when circumstances change.
What Is an Escape Clause? In terms of labor laws, escape clauses are provisions included in member union contracts that allow members to exploit an "escape period," which is a period of time in which they may choose to leave the union without repercussions.
