Price Level Adjustment
/ˈpraɪs ˈlɛvəl əˈdʒʌstmənt/
Definitions
- (n.) A contractual clause or mechanism that modifies payment amounts to reflect changes in inflation or other economic indicators affecting price levels.
The contract included a price level adjustment to protect the supplier against inflation.
Forms
- price level adjustment
- price level adjustments
Related terms
See also
Commentary
Price level adjustments are common in long-term contracts to maintain economic fairness despite inflation or deflation.
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.