Simple definition
A clause intended to give one party terms at least as favorable as those given to specified others.
Commercial
What Does Most Favored Nation Mean?
A clause intended to give one party terms at least as favorable as those given to specified others.
Example in a contract
The customer receives most favored nation pricing.
What most favored nation means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about most favored nation.
What does most favored nation mean in plain English?+
A clause intended to give one party terms at least as favorable as those given to specified others.
Where might most favored nation appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.