Search Results for: COST-OF-LIVING CLAUSE

cost of living clause

cost-of-living clause. A provision (as in a contract or lease) that gives an automatic wage, rent, or benefit increase tied in some way to cost-of-living rises in the economy. • A cost-of-living clause may also cover a decrease, though this is rare. See INFLATION. [Cases: Landlord and Tenant 200. 7.]

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escalator clause

glossary / ESCALATOR CLAUSE

escalator clause. 1. A contractual provision that makes pricing flexible by increasing or decreasing the contract price according to changing market conditions, such as higher or lower taxes or operating costs. [Cases: Contracts 229, 231. C.J.S. Contracts §§ 378, 385, 387–391, 393–398.] 2. A provision in a divorce decree or divorce agreement providing for the

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