Escalation Clause
/ˌɛskəˈleɪʃən klaʊz/
Definitions
- (n.) A clause in a contract that allows for an adjustment in prices or payments based on specified conditions, often related to inflation or cost increases.
The lease agreement included an escalation clause to increase rent annually with inflation.
Forms
- escalation clause
- escalation clauses
Related terms
See also
Commentary
Escalation clauses should specify clear triggering events and calculation methods to avoid disputes.
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.