Definition for : Escalator clause
GLOSSARY LETTER
An "escalator clause" (also called "Escalation clause") designates a clause which specifies that a certain amount owed periodically will be increased to reflect certain Inflation Benchmark(-s). Such clauses are often found in rental contract / Lease agreement, as well as in relation with project finance.
(See Chapter 22 Shares of the Vernimmen)
To know more about it, look at what we have already written on this subject