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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.
Aug 5, 2023 · Legal Definition. 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.
Feb 22, 2024 · What exactly are escape clauses? They are provisions within contracts that allow one or both parties to terminate the agreement under specific contained in the contract circumstances without facing penalties. In other words, they are a part of a contract that lets one person off the hook if certain things happen.
Jan 1, 2024 · Escape Clause Example: Everything You Need to Know. An escape clause example is a set of provisions that are included in certain contracts that allow the contract to be terminated without repercussions. 3 min read updated on January 01, 2024
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. Because of the escape clause, they could exit the agreement if sales declined.
Mar 5, 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.
a statement in a contract that allows you to break all or part of the contract under particular conditions. (Definition of escape clause from the Cambridge Business English Dictionary © Cambridge University Press) Examples of escape clause. escape clause.
