Exit Clause
An exit clause is a contractual provision allowing one or both parties to terminate the agreement under specified conditions without penalty.
| Exit Condition | Example |
| Financing failure | Cannot secure mortgage |
| Inspection issues | Unsatisfactory property condition |
| Force majeure | Unforeseeable circumstances |
| Material breach | Other party violation |
| Deadline expiry | Time-limited option |
| Components | Requirement |
| Trigger events | Clearly defined conditions |
| Notice period | How much warning required |
| Financial consequences | Deposit return or forfeiture |
| Mutual vs unilateral | Who can exercise |
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