MFN (Most Favored Nation (Customer))

Most Favored Nation terms (MFN) refer to a customary clause in business contracts and procurement agreements, where each contracting party is granted the same privileges – or “favored” status – as any other customer. This contract clause commonly applies to price and other related conditions, ensuring all customers receive the same benefits and pricing under similar circumstances. In essence, MFN terms allow for businesses to practice fairness and equality in their dealings, creating a level playing field for all parties involved.