Escalator Clause

Business, Legal & Accounting Glossary

Definition: Escalator Clause


Escalator Clause

Quick Summary of Escalator Clause


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.




What is the dictionary definition of Escalator Clause?

Dictionary Definition


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.


Synonyms For Escalator Clause


escalation clause


Related Phrases


de-escalation clause


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Definition Sources


Definitions for Escalator Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.