Business, Legal & Accounting Glossary
A provision of a contract that calls for an increase in price in the event of an increase in certain costs. For example, an escalator clause may specify that rent due will increase with inflation. also called escalation clause. opposite of de-escalation clause.
n. a provision in a lease or other agreement in which rent, installment payments or alimony, for example, will increase from time to time when the cost of living index (or a similar gauge) goes up. Often there is a maximum amount of increase (“cap”) and seldom is there a provision for reduction if the cost of living goes down or for deflation instead of inflation.
escalation clause
de-escalation clause
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This glossary post was last updated: 30th October, 2021 | 0 Views.