Mandatory Increase Clause Samples

A Mandatory Increase clause requires one or more parties to automatically raise a specified amount, such as payment, coverage, or another obligation, under certain conditions outlined in the agreement. For example, this clause might obligate a tenant to increase rent annually by a fixed percentage, or require an insured party to raise their insurance coverage if the value of insured assets increases. The core function of this clause is to ensure that obligations keep pace with changing circumstances, preventing disputes and maintaining fairness over time.