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Escalator clause
(redirected from escalation clauses)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.07 sec.
Escalator clause
Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation.


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Escalation clauses, which were intended to keep a rental rate current with inflation and market increases, were a significant cause of the most current trend of having no CPI escalation.
contracts contain annual price escalation clauses, instead of de-escalation guarantees or targets;
and in their contracts with oil companies the price escalation clauses are benchmarked to indexes that we [ucg] generate.
 
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