Words / B / Business

break fee

noun

C1CEFR level
78/100Rarity: rare
TechnicalRegister

A sum payable by a party that walks away from a signed deal, compensating the other for wasted cost and lost opportunity.

If they take a higher offer, the break fee alone puts thirty million on the table for us.

Similar: breakup fee, termination fee

Topic: Negotiation in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Negotiation