Meaning & use
out clause
Last updated
Meaning
nouncountable
A part of a contract that lets someone end the agreement without penalty under certain conditions.
Grammar: Countable: you can say 'an out clause' or 'two out clauses'.
Patterns
- include an out clause
- have an out clause
- an out clause in a contract
The athlete's contract has an out clause if the team fails to make the playoffs.
She insisted on an out clause before signing the lease.
The out clause allows either party to cancel with 30 days' notice.
Word forms
| plural | out clauses |
|---|
Common combinations
- include an out clause
- The publisher agreed to include an out clause in the author's contract.
- exercise an out clause
- The company exercised its out clause and ended the partnership.
- negotiate an out clause
- The lawyers negotiated an out clause that protected both sides.
- a standard out clause
- A standard out clause gives the buyer seven days to change their mind.
Synonyms and how they differ
- escape clause
- Same meaning, but 'escape clause' is more common in everyday speech; 'out clause' sounds slightly more legal.
- termination clause
- Broader: it covers any way to end a contract, not just a special escape option.
Word family
Commonly confused: out clause or outsourcing?
out clause vs outsourcing
Outsourcing means hiring an outside company to do work; it is not related to contracts ending.
Practice
The player's contract has a(n) ______ that lets him leave if the team is relegated.
Choose one answer.
An out clause is a contract provision allowing someone to exit; 'outsource' is a verb, 'outbreak' is a sudden start of disease or war, and 'outcome' is a result.
Make it your own
Write a sentence using “out clause”, then check it and compare it with the examples above.