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English definition of “break fee”

break fee

noun [C]
 
 
LAW
(also break-up fee) a payment that a company must make if it does not keep an agreement to be sold to another company: There is a £6m break fee if the company sells out to another bidder.
a payment that you must make if you end an agreement before the time that has been agreed: We would like to pay off our mortgage early but there's a break fee involved.
(Definition of break fee from the Cambridge Business English Dictionary © Cambridge University Press)
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