Indexation Clause
/ɪnˌdɛkˈseɪʃən klɔːz/
Definitions
- (n.) A contractual provision linking payment amounts or obligations to a specified index, such as inflation or a price index, to adjust values over time.
The loan agreement included an indexation clause to adjust repayments according to inflation rates.
Forms
- indexation clause
- indexation clauses
Related terms
See also
Commentary
Indexation clauses are critical in long-term contracts to protect parties from economic fluctuations, especially inflation; precise drafting is essential to define the index and adjustment mechanism clearly.
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.