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Escape Clause

Definition - What does Escape Clause mean?

Escape clause refers to a particular provision in a contract through which one of the parties can be released from a certain duty or allowed to get out of an obligation if a particular (pre-defined) event occurs.

Justipedia explains Escape Clause

In the case of a sale of a real estate, the purchaser can include an escape clause which will allow an end to the contract without being held responsible for breach of contract.

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