Most Favored Nation Clause
/ˌmoʊst ˈfeɪvərd ˈneɪʃən klɔːz/
Definitions
- (n.) A contractual provision ensuring a party receives terms no less favorable than those granted to any third party.
The supplier invoked the most favored nation clause to secure the best pricing offered to any distributor.
- (n.) A clause in international trade agreements requiring a country to extend the same trade advantages to all other parties as it does to its most favored trading partner.
The tariff reductions were extended under the most favored nation clause in the trade pact.
Forms
- most favored nation clause
- most favored nation clauses
Related terms
See also
Commentary
In contract drafting, specify the scope and duration of the most favored nation clause clearly to avoid disputes over which terms trigger renegotiation or adjustments.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.