An "escalator clause" is a term used when there is an automatic increase or adjustment in a contract or agreement. It means that the clause allows for periodic increases in prices, wages, or other terms based on certain conditions or criteria.
Sentences with «escalator clause»
If this is in the US, tax escalator clauses are not uncommon, but I've never seen someone try to tack on insurance / utility increases. (money.stackexchange.com)
The reason major publishers can't offer more than 25 % of net on digital sales is because of escalator clauses in contracts with bestselling authors. (publishingperspectives.com)
Some separation agreements provide for automatic escalator clauses that eliminate the need for court - ordered modification. (divorcesource.com)