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Simple English definitions for legal terms

escalation clause

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A quick definition of escalation clause:

An escalation clause is a part of a contract that allows for the price to change based on certain conditions. For example, if taxes or operating costs increase, the contract price may also increase. It can also be used in divorce agreements to automatically increase alimony payments under certain circumstances. In the oil and gas industry, an escalation clause allows for the base price of gas to be adjusted as the market changes. This can be either an increase or a decrease in price.

A more thorough explanation:

An escalation clause is a provision in a contract that allows for the adjustment of the contract price based on changing market conditions. This can include factors such as taxes, operating costs, or changes in the cost of living.

  • A construction contract may include an escalation clause that allows for the price to increase if the cost of materials or labor increases.
  • A divorce agreement may include an escalation clause for alimony payments, which would increase if the obligor's salary increases.
  • An oil and gas contract may include an escalation clause that allows for the base price of gas to be adjusted as the market changes.

These examples illustrate how an escalation clause can provide flexibility in contracts and allow for adjustments to be made based on changing circumstances.

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[] baddestbunny
15:58
nah they got all my friends on the phones too
[] baddestbunny
15:59
nobody important is free
[] baddestbunny
15:59
in 1 minute I'll be on my twelfth hour of work today
Dkk
16:00
I will apply to Yale if it helps the cause.
damn that is a lot of hours
do you get off at 7pm?
Dkk
16:01
@TheAdoptedOne: he gave up too easily.
[] baddestbunny
16:01
8!
Mr. Bad Fumbla
Bag
Dkk
16:01
Commits to kys when I commit to kms the same day. What a crazy november 5th.
[] baddestbunny
16:02
kms isn't even a t50 you should r&r
does anyone ever think about how we have no idea who everyone else here is? like you guys dont know me at all thats so crazy cause i talked to you more than ppl irl today
i'm a hallucination
the hat man
HopefullyInLawSchool
16:03
isnt r&r a t50?
keep popping benadryls and ill stay online
law school chat roulette
[] baddestbunny
16:04
living out the plot of the movie unfriended in the yale invite-only webinar
You were only invited to round out the numbers anyway lol
Dkk
16:05
I'm too old to r&r, just gunna kms rn.
Dkk
16:05
Gotta get this show on the road.
Dkk
16:05
Lmfao
JumpySubsequentDolphin
16:05
washu stop emailing me while I’m waiting for a decision challenge
[] baddestbunny
16:05
I'm not in their webinar I just thought it would be a funny thing to have happen
[] baddestbunny
16:05
bc I have a sense of whimsy and imagination
Ah, youre a worm gorl'
shaquilleoatmeal
16:07
battle of the bunnies
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