| Commentary

54.5 Indexation

| Commentary

54.5 Indexation

An indexation clause allows the parties to adjust prices for goods or services or salaries or wages to allow for the effect of inflation. Some of the factors to consider when including an indexation clause are:

  1. (a)

        Is an indexation clause appropriate? Is this an appropriate method of allowing for the rise in prices? In the following circumstances an indexation clause may not be appropriate:

    1. (i)

          where the party wishing to increase prices is restricted to a contractually fixed method, which does not give control to that party but leaves it subject to outside events (such as fluctuations

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