Definitions for "Escalation" Add To Word List
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Regarding the structure of tariffs, see tariff escalation. In the context of a trade war, escalation refers to the increase in tariffs that occurs as countries retaliate again and again.
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The rent increase, calculated in accordance with the specific method formula agreed upon in the lease to pay for building operating expenses.
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A clause, usually in long-term supply contracts, which provides for periodic price adjustment based on variations in any or all cost factors. "Escalating prices" are the opposite of "firm" prices, which are not subject to change over the life of a contract.
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A clause in a lease providing for an increased rental at a future time. Several such clauses are: (1) cost of living - a clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes; (2) fixed increases - a clause which calls for a definite, periodic rental increase; (3) direct expense - the rent adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases, increased maintenance costs, etc.
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