This case has been cited 1 times or more.
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2004-03-30 |
CARPIO, J. |
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| Construction contracts may provide for the escalation or increase of the price originally agreed upon by the parties in certain instances. As the Court explained in Baylen Corporation v. Court of Appeals:[25] Escalation clauses in construction contracts commonly provide for increases in the contract price under certain specified circumstances, e.g., as the cost of selected commodities (cement, fuel, steel bars) or the cost of living in the general community (as measured by, for instance, the Consumer Price Index officially published regularly by the Central Bank) move up beyond specified levels. (Emphasis supplied) The parties may validly agree on an escalation clause.[26] However, the enforceability of an escalation clause is subject to the conditions stipulated in the contract.[27] | |||||