Contractual provisions based on indexing are also called
A)withdrawal clauses.
B)swap clauses.
C)escalator clauses.
D)averaging clauses.

Question

Quizplus · Accepted Answer

Contractual provisions based on indexing are known as escalator clauses because they allow for the automatic adjustment of prices or wages based on changes in an external index or benchmark. These clauses help to maintain the real value of payments over time by accounting for inflation or other economic factors.

Contractual Provisions Based on Indexing Are Also Called