escalation clause

Definition

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

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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escalator clause de-escalation clause