Price Indexation
/ˈpraɪs ˌɪndɛkˈseɪʃən/
Definitions
- (n.) A contractual mechanism adjusting payment obligations based on changes in a specified price index to account for inflation or market fluctuations.
The lease agreement included price indexation to adjust rent annually according to the consumer price index.
Forms
- price indexation
- price indexations
Related terms
See also
Commentary
Price indexation clauses are drafted to clearly specify the applicable index, adjustment frequency, and rounding method to avoid disputes over calculations.
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.