contract out of
phrasal verb.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.
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.
- opt out of
- exempt oneself
- withdraw from
- subscribe to
- participate in
- join
- Particles
- out of
- Separability
- inseparable
- Pattern
- contract + out + of + object
usually used in legal, financial, or employment contexts followed by a specific scheme or obligation.
contrast with 'opt out of', which is more general and less formal; 'contract out of' implies a formal, legally binding agreement.
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.
Last updated April 24, 2026