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.
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
Breakaway broker
Financial advisor who leaves a large firm to start an independent practice.
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Break-even point
Sales level where total revenue equals total costs, resulting in zero profit.
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Bridge loan
Short-term financing used to cover immediate needs until permanent funding is secured.
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Broker
Intermediary who facilitates transactions between buyers and sellers for a commission.
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