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 automatic increase of alimony payments upon the occurrence of any of various triggering events, such as cost-of-living increases or an increase in the obligor’s salary. • Escalation clauses for child support are often unenforceable.

3. Oil & gas. A provision in a long-term gas contract allowing the base price of the gas to be adjusted as the market changes. • The actual adjustment may be up or down. — Also termed escalation clause; fluctuating clause.


专业法律词汇 词条贡献者
双语律师Pablo,国际知名法学院法律专业,擅长翻译涉及高端品牌及消费品领域的法律文件。
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