Escalation Clause (Contract) - Explained
What is an Escalator Clause?
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Table of ContentsWhat is an Escalation Clause?
What is an Escalation Clause?
An escalation clause (or escalator clause) refers to a provision permitting a rise in the price of goods, services, or labor wages. The escalation clause is often employed to account for price inflation.
Escalation clauses are common in real estate leases, tuition, and membership dues.