Deflation
/dɪˈfleɪʃən/
Definitions
- (n.) A decrease in the general price level of goods and services affecting contracts and economic obligations.
The contract's payment terms had to be reconsidered due to deflation during the economic downturn.
Forms
- deflation
Related terms
See also
Commentary
In legal drafting, explicitly addressing deflation is important in long-term contracts to allocate risk of changing price levels.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.