Definition Edit

A most favored nation clause (also called a most favored customer clause or most favored licensee clause) is a contract provision in which a seller (or licensor) agrees to give the buyer (or licensee) the best terms it makes available to any other buyer (or licensee).

Sample clause Edit

All of the benefits and terms granted by seller [lessor] [licensor] herein are at least as favorable as the benefits and terms granted by seller [lessor] [licensor] to any previous buyer [lessee] [licensee] of the hardware [software] described in this Agreement. Should seller [lessor] [licensor] enter into any subsequent agreement with any other buyer [lessee] [licensee], [during the term of this Agreement,] which provides for benefits or terms more favorable than those contained in this Agreement, then this Agreement shall be deemed to be modified to provide buyer [lessee] [licensee] with those more favorable benefits and terms.

Seller [lessor] [licensor] shall notify buyer [lessee] [licensee] promptly of the existence of such more favorable benefits and terms and buyer [lessee] [licensee] shall have the right to receive the more favorable benefits and terms immediately. If requested in writing by the buyer [lessee] [licensee], seller [lessor] [licensor] shall amend this Agreement to contain the more favorable terms and conditions.

See also Edit

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