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 […]