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Escalator Clause

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Sam Site Admin Joined: 21 May 2005 Posts: 281 Location: CALIFORNIA 117.49 Dollars($)	Posted: Thu May 27, 2004 10:09 pm    Post subject: Escalator Clause Escalator Clause is a prearrangement in a contract that provides for increase or decrease in the contract price, benefits, etc. depending upon the market conditions. Mainly it calls for an increase in price in the event of increase in certain costs, such as High operating expenses Tax increases Increased maintenance cost, etc. It is also known as Escalation Clause. For example, in a house rent contract an 'escalator clause' may include that a house rent due will increase with increase in inflation and maintenance costs.

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