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An escalation clause is a part of a contract that allows the price to increase under specific circumstances. Picture yourself bidding on a rare collectible you really want, and you don't want to lose it to someone else who bids slightly higher. An escalation clause lets you say, "If someone else offers more money, I'll pay a bit extra to beat their offer."
For example, let's say you want to buy a house for $300,000, and you really don't want to lose it to another buyer. You could include an escalation clause in your offer that says, "If someone else offers more than my $300,000 bid, I'm willing to pay $5,000 more than their offer, up to a maximum of $320,000." This way, if another buyer offers $305,000, your escalation clause would automatically raise your offer to $310,000, keeping you in the lead.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land of houses and deals,
Where buyers spin their wheels,
An escalation clause, you see,
Helps you win the bidding spree.
When others bid and try to snatch,
Your dream home, the perfect catch,
This clause steps in, oh so wise,
To outbid them and claim your prize.
It says, "If others offer more,
I'll raise my bid, that's for sure!
A bit extra I'll gladly pay,
To ensure my dream won't slip away."