Common use of Price Escalation Clause Clause in Contracts

Price Escalation Clause. Buyer and Seller acknowledge the market conditions have caused dramatic material and labor shortages. Consequently, material and labor suppliers have at times substantially increased prices. Therefore, Buyer and Seller agree that if Seller experiences a $2,000 or more increase in the costs of material or labor to be used in the construction of Property, Seller may request an increase in the purchase price of Property. ▇▇▇▇▇ agrees to accept or reject the price increase within five (5) calendar days of notification to Buyer or ▇▇▇▇▇'s agent. If Buyer does not agree to accept price increase or fails to respond by the end of the notification period, Seller shall terminate Agreement, and as mentioned elsewhere Construction Deposits are non-refundable if Agreement is terminated. Seller shall have the right to ask for a price increase at any and all times that increases are greater than $2,000 in the costs of material or labor.