The Escalation Clause Explainer

Explain an escalation clause to my client.

My client: [BUYER / SELLER]
Base offer and proposed cap: [AMOUNTS, IF BUYER]
Increment and trigger being considered: [DESCRIBE]
Competition: [KNOWN / SUSPECTED / NONE]
Local practice and MLS rules: [DESCRIBE]

Produce:
1. What an escalation clause does, in one plain sentence
2. How it would work with my client's specific numbers
3. The advantages and the real risks — including revealing
   the ceiling and proof-of-competing-offer requirements
4. When it helps and when it backfires
5. For a seller: how to evaluate and respond to one
6. Questions my client should answer before using it
7. What to confirm before relying on it

Rules:
- Explain the mechanism; do not advise whether to use it as
  a legal or contractual matter — mark [REFER TO CONTRACT /
  ATTORNEY]
- Mark every procedural and enforceability point as [VERIFY
  AGAINST STATE LAW, BROKERAGE POLICY AND MLS RULES] —
  acceptance and disclosure practice vary widely
- Analyse terms and numbers, never buyers as people
- Do not predict what the other side will do