escalator clause
(redirected from escalation clauses)Also found in: Dictionary, Thesaurus, Legal.
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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Escalator Clause
A clause in a contract stating that a certain payment increase will grow each year according to some formula stated in the contract. For example, an employment contract may have an escalator clause allowing for small increases in salary each year. An escalator clause usually exists to protect one party to the contract from inflation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
escalator clause
See escalation clause.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.