escape clause

noun

: a part of a contract that allows a person to get out of the contract in a particular situation

Examples of escape clause in a Sentence

Recent Examples on the Web But there’s an escape clause written into the deal: Trump can seek a waiver of the lockup from the post-merger board. Michael Hiltzik, Los Angeles Times, 22 Mar. 2024 There was only one problem: The deal spanned 12 years and had no escape clause late in the term, according to a source. Jon Wilner | , oregonlive, 5 Aug. 2023 These private sales of SOL are a potential legal escape clause, as Bloomberg’s Matt Levine described them last week. Ben Weiss, Fortune Crypto, 13 June 2023 However, a 1996 law provides an escape clause that allows the Treasury Department to continue paying Social Security benefits, even if there is a delay in raising the debt ceiling. Alexis Christoforous, ABC News, 3 May 2023

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Dictionary Entries Near escape clause

Cite this Entry

“Escape clause.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/escape%20clause. Accessed 23 Apr. 2024.

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
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