An escalator clause is a clause in a
leaseor contractthat guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined.
Escalator clauses are quite common in construction contracts to cover unexpected costs due to fluctuations in the prices for
raw materials, fuel, and labor during the course of the construction project.
Wikimedia Foundation. 2010.
Look at other dictionaries:
escalator clause — es·ca·la·tor clause / es kə ˌlā tər / n 1: a clause in a contract that provides for an increase in the amount of the payments made under the contract to reflect an increase in costs or the raising of a government imposed cap on costs 2: a clause… … Law dictionary
escalator clause — ☆ escalator clause n. a clause in a contract providing for increases or decreases in wages, prices, etc. based on fluctuations in the cost of living, production costs, etc … English World dictionary
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. Bloomberg Financial Dictionary * * * escalator clause escalator clause … Financial and business terms
Escalator Clause — A contract provision allowing for one to pass an increase in costs to another party. Escalator clauses are usually related to influences beyond both parties control, such as inflation. Also known as an escalation clause . Escalation clauses allow … Investment dictionary
escalator clause — In union contract, a provision that wages will rise or fall depending on some standard like the cost of living index. In lease, provision that rent may be increased to reflect increase in real estate taxes, operating costs, and even increases in… … Black's law dictionary
escalator clause — noun a clause in a contract that provides for an increase or a decrease in wages or prices or benefits etc. depending on certain conditions (as a change in the cost of living index) • Syn: ↑escalator • Hypernyms: ↑article, ↑clause … Useful english dictionary
escalator clause — (also escalation clause) noun a clause in a contract that allows for a rise in wages or prices under certain conditions … English new terms dictionary
escalator clause — a provision in a contract calling for adjustments, usually increases, in charges, wages, or other payments, based on fluctuations in production costs, the cost of living, or other variables. Also called, esp. Brit., escalation clause. [1925 30,… … Universalium
escalator clause — es′calator clause n. bus a provision in a contract calling for adjustments, usu. increases, in charges, wages, or other payments, based on fluctuations in production costs, the cost of living, or other variables … From formal English to slang
escalator clause — /ˈɛskəleɪtə klɔz/ (say eskuhlaytuh klawz) noun → escalation clause … Australian English dictionary