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.

[Blacks Law 8th]