There's more chance of me going to Afghanistan to open a bar and titty club in Helmand Province than there is that Bale will ever pull on a Real Madrid shirt againI'm just answering the question you posed.
Can RM cancel the loan midway through year 1? You can write anything into the terms of a deal, so potentially yes, but I wouldn't expect us to concede to such a clause.
Well that's what I've expected and hoped for all along.... That'd certainly the best (lowest risk) deal for us and if we wanted him for a 3rd year he'd then finally be out of contract and that could be a fresh negotiation directly between him & us.