The portion of a legal text that permits departure from its provisions in the event of specified adverse circumstances. The U.S. statute (section 201, 1974 trade act) that permits imports to be restricted, for a limited time and on a nondiscriminatory basis, if they have caused injury to U.S. firms or workers. The escape clause accords with the Safeguards Clause (Article XIX) of the GATT.
Lets a party out of contract responsibilities in the event of stated situations.
A provision in a bilateral or multilateral trade agreement permitting a signatory nation to suspend tariff or other concessions when imports threaten serious harm to the producers of competitive domestic goods. GATT Article XIX and FTA Chapter Eleven contain such safeguard provisions to help firms adversely affected by a relatively sudden surge of imports adjust to the rising level of import competition.
(See also entry under same name in Section I). Provisions under US law authorizing temporary relief for domestic producers and workers injured by import competition. Originally limited to those whose losses resulted from prior US trade concessions, escape clause eligibility was extended in Section 201 of the Trade Act of 1974 to all who could establish that imports were "a substantial cause of serious injury, or the threat thereof' (see injury, Sec. /). The Trade Act of 1988 stipulated that the goal of any relief must be "positive adjustment." If the US International Trade Commission (USITC) finds injury and recommends relief, the President must grant it or report to Congress why, after reviewing the US national economic interest, he has decided there is no appropriate and feasible action to take. Congress may override this decision through enactment of a joint resolution, imposing the remedy recommended by the USITC. Import restrictions imposed under the escape clause authority usually last no longer than five years.
Purchase Agreement provision in an FHA or VA laon allowing the buyer to terminate the contract if the appraised value of the property is less than the agreed price.
A clause in the purchase contract that requires the buyer to respond to changed circumstances of the sale within a set time period or the contract is voided. The most common use of the escape clause is when the buyer makes the purchase offer contingent on the sale of another house. Typically, the seller's house remains on the market while the buyer tries to sell the contingent house. If another purchase offer is received for the seller's house, the first buyer has a set time (often only 24 to 48 hours) to agree to remove the house – sale contingency and proceed with the closing of the sale.
A clause added to the contract that allows either party the option of exiting the contract. Both parties are no longer bound by any contractual obligations.
A clause in a sales contract allowing the buyer to terminate the contract if the appraised value is significantly below the purchase price. Required for FHA and DVA loans where applicant has signed the contract prior to receiving the appraisal.
Allows nonperformance of the contract if a certain specified condition occurs.
A provision allowing one party or more to cancel all or part of the contract if certain events fail to happen, such as the ability of the buyer to obtain financing within a specified period.
A provision in a bilateral or multilateral commercial agreement permitting a signatory nation to temporarily violate their obligations when imports threaten serious harm to the producers of competitive domestic goods.
Any provision in a contract that allows one or more parties to end the contract upon the occurrence of certain events.
n. a provision in a contract which allows one of the parties to be relieved from (get out of) any obligation if a certain event occurs.
A provision in maintenance of membership union contracts giving union members an "escape period" during which they may resign from union membership. Members who do not exercise this option must remain members for the duration of the contract.
A clause in a reinsurance treaty enabling the reinsurer to terminate the contract upon notice.
Provision in a contract that allows one or more of the parties to cancel all or part of the contract if certain events or situations do or do not happen.
A provision in a contract that allows for the cancellation of all or part of the contract.
An escape clause is any clause, term or condition in a contract that allows a party to that contract to avoid having to perform the contract.