Contracts

A Maine commercial lease with an 'escalation clause' means the rent:

ADecreases when the tenant's business grows
BAutomatically increases based on a formula (CPI, fixed percentage, etc.) at specified intervals✓ Correct
CCan only be increased with court approval
DIs set for the entire lease term with no changes

Explanation

An escalation clause allows rent to increase at specified intervals based on a predetermined formula, such as a percentage increase or adjustment to the Consumer Price Index, protecting the landlord from inflation.

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