Commercial terms & deal structure · Core
Price escalation
Also called: price adjustment
ELI5
A contractual mechanism permitting price increases under stated conditions.
Used in conversation
“The draft mentions price escalation, but the scope and jurisdiction are still unclear.”
Pitch context
You will see “Price escalation” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches commercial terms & deal structure.
Why it matters: In commercial terms & deal structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 3
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Small Business Administration — Write your business planSupporting source family · primary · checked 2026-08-16
- IFRS Foundation — IFRS GlossarySupporting source family · primary · checked 2026-08-16