Ratchet clause

Quelle: https://www.investopedia.com/terms/r/ratchet-clause.asp

A ratchet clause is a contractual provision that ensures that price or cost adjustments in a contract can only occur in one direction, typically upwards, in order to protect the interests of the parties involved.

Related Terms

You might also be interested in these terms

war clause

A contractual provision in shipping, transport, or insurance contracts that governs or excludes liability, performance, or coverage in case of war or ...

Learn more

exit clause

A contractual provision that allows a party to terminate or exit an agreement under specified conditions, often including notice periods, fees, or oth...

Learn more

Sunset Clause

A sunset clause is a contractual provision that stipulates the expiration or termination of a contract after a specified period or under certain condi...

Learn more

strike clause

A strike clause is a contractual provision in logistics, supply chain, or transport contracts that governs performance interruptions or delays caused ...

Learn more

catch-all clause

A catch-all clause is a contractual provision that broadens the scope of obligations, liabilities, or goods covered beyond those explicitly listed in ...

Learn more

Lockout clause

A contractual provision that allows one party to suspend performance or terminate obligations under predefined conditions (e.g., breach, non-payment, ...

Learn more