A provision in a lease or other agreement in which rent, installment payments or alimony, for example, will increase from time to time when the cost of living index (or a similar gauge) goes up. often there is a maximum amount of increase (“cap”) and seldom is there a provision for reduction if the cost of living goes down or for deflation instead of inflation.
Was This Term Helpful?
We're happy we could help you and thanks for the feedback you rock.
We have failed you and we'll live with that shame forever. Help us help you!
Still got a question or concern?
Click here to contact us or go back to the main Glossary page.