A release clause, also known as a break fee or termination payment, is a provision in a contract that allows one party to exit the agreement under certain conditions. This typically involves paying compensation to the other party for breaching the terms of the deal. Release clauses are commonly found in business agreements such as mergers and acquisitions, where one company may agree to buy another but also include a provision allowing them to back out if specific circumstances arise. In sports, release clauses can be used by players to move to other teams when certain conditions are met, often involving payment of a transfer fee to their current club.