In public policy, a sunset provision or sunset clause is a measure within a statute, regulation or other law that provides that the law shall cease to have effect after a specific date, unless further legislative action is taken to extend the law.

What is a sunset clause on a contract?

Off-the-plan contracts specify the time by which the project must be completed. ... This is called the sunset clause or sunset date. If the project is not completed by the sunset date, the contract can be rescinded and your deposit returned to you.

How do sunset clauses work?

A sunset clause is a condition included in a contract that provides that if a specified event has not occurred by a specific date, then either one or both parties can cancel the contract on giving written notice to the other.