In Banco Filipino Savings & Mortgage Bank vs. Navarro, this Court in essence ruled that in general there is nothing inherently wrong with escalation clauses. In IBAA vs. Spouses Salazar, the Court reiterated the rule that escalation clauses are valid stipulations in commercial contracts to maintain fiscal stability and to retain the value of money in long term contracts. [G.R. No. 101771. December 17, 1996]
