escalation clause


A provision of a contract which calls for an increase in price in the event of an increase in certain costs. For example, an escalation clause may specify that rent due will increase with inflation. opposite of de-escalation clause.

Use escalation clause in a sentence

After housing prices in the New York area went up I was shocked to learn there was an escalation clause in my lease and my rent would go up significantly.

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All of our customer contract have an escalation clause included in them. However, the escalation amount is capped to match the CPI at the time of escalation.

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Many office buildings have an escalation clause in their rent contract that enables them to raise the cost of rent if inflation were to occur.

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de-escalation clause escalator clause