most favored nation clause

most-favored-nation clause.

1. A clause in an agreement between two nations providing that each will treat the other as well as it treats any other nation that is given preferential treatment. [Cases: Treaties

8. C.J.S. Treaties § 6.]

2. By extension, such a clause in any contract, esp. an oil-and-gas contract. — Often shortened to favored-nation clause; MFN clause. — Also termed most-favored-nations clause. Cf. preferential tariff under TARIFF.


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