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A most favored nation, most favorite customer, or MFN clause is a contractual clause where it says that you have to treat the other party at least as well as you treat anyone else. So, for example, an MFN might read that you will not give anybody a better price than youve given them. Right? Its a promise that no one else will get a better deal out of you. Or there can sometimes be an MFN on terms. Like if you agree to better terms and conditions on any of the material contractual terms of the agreement that youll go back and give it to them. And these are not great clauses to have in contracts, if you can avoid them, but sometimes you cant. They can be a really important thing that some large customers sometimes use to ensure that you are giving them the best deal that you could possibly get them. So like your salesperson says, this is the best deal we give anyone. Youre getting the best one. An MFN clause is kind of like an enforcement mechanism on that. Like you literally do
