English Reference

Phrasal verb

contract out of

Definition

phrasal verb. to sign an agreement that says you will not be part of a specific system or rule.

phrasal verb. to formally agree that a particular legal obligation, scheme, or statutory provision will not apply to oneself or one's organization.

Examples

“You can contract out of the state pension scheme.”

“Employees were given the option to contract out of the new health insurance plan if they already had private coverage.”

“The legal team advised the corporation to contract out of certain liability clauses to mitigate potential financial exposure during the merger.”

Examples

simple

“You can contract out of the state pension scheme.”

contextual

“Employees were given the option to contract out of the new health insurance plan if they already had private coverage.”

complex

“The legal team advised the corporation to contract out of certain liability clauses to mitigate potential financial exposure during the merger.”

Usage

usually used in legal, financial, or employment contexts followed by a specific scheme or obligation.

Teaching tip

contrast with 'opt out of', which is more general and less formal; 'contract out of' implies a formal, legally binding agreement.

Pitfall

They contracted out the agreement.

They contracted out of the agreement.

without 'of', 'contract out' means to hire an outside firm to do work; 'contract out of' means to exempt oneself from a rule.

Phrasal verb

Particles

out of

Separability

inseparable

Pattern

contract + out + of + object

Synonyms

opt out ofexempt oneselfwithdraw from

Antonyms

subscribe toparticipate injoin

Grammar

This entry

Level
C1 · Advanced
Updated

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English Reference