Skip to content
SWB
BGeneralUpdated 2 Nov 2026

Breakaway clause

Contract provision allowing parties to terminate agreement under specific conditions.

Definition

Breakaway clause is the contract provision allowing parties to terminate agreement under specific conditions. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

Share

In the room

How the word shows up in a real conversation.

You know Breakaway clause is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Contract provision allowing parties to terminate agreement under specific conditions.

Common mistake

Using Breakaway clause as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

See also

Research more

Open the word in an AI tool with a ready prompt. We do not send your data.

Get one word every week

A 3-minute read: 1 word, 1 founder lesson, 1 tool.

Free. One email a week. Unsubscribe in one click.

Keep reading

Every startup word, in one place

Stay on the General shelf, or go back to the full book.