Give permission to break contract -- get cancelled! (7)
I believe the answer is:
deleted
'cancelled' is the definition.
('delete' can be a synonym of 'cancel')
'give permission to break contract' is the wordplay.
'give permission to' becomes 'let' (I've seen this in another clue).
'break' means one lot of letters goes inside another (inserted letters break the word apart).
'contract' becomes 'deed' (I've seen this in other clues).
'let' going into 'deed' is 'DELETED'.
'get' acts as a link.
(Other definitions for deleted that I've seen before include "Removed" , "Struck out" , "Erased" , "Expunged" , "Effaced" .)