What is a best customer clause?

What are MFC clauses? "Most favoured customer" ("MFC") clauses impose an obligation on a supplier to give a "favoured" customer a price which is at least as low as the best price which is given to its other customers (or "on no less favourable terms").

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Most Favored Customer Clause

Alameda California Most Favored Customer Clause

Name: Alameda California Most Favored Customer Clause
Brand: US Legal Forms
Rating: 4.7 (487 reviews)

Category:

Licenses - Rights Acquisitions

State:

Multi-State

County:

Alameda

Control #:

US-IP1019

Format:

Instant download

Description

This form contains a Most Favored Customer Clause, which can be incorporated into license agreements to obligate the licensor to grant the licensee equivalent or better terms than the licensor has granted to any of its past, present and future customers.

How to fill out Alameda California Most Favored Customer Clause?

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FAQ

What are MFC clauses? "Most favoured customer" ("MFC") clauses impose an obligation on a supplier to give a "favoured" customer a price which is at least as low as the best price which is given to its other customers (or "on no less favourable terms").

FavouredCustomer Clause (MFC) is a contractual arrangement between vendor and customer that guarantees the customer the best price the vendor gives to anyone.

A most favoured customer clause, or MFC, is an agreement that outlines an obligation for a supplier to provide favored customers with pricing that is no higher than the best prices offered to other clients.

FavouredCustomer Clause (MFC) is a contractual arrangement between vendor and customer that guarantees the customer the best price the vendor gives to anyone. The MFC prevents a company from treating different customers differently in negotiations.

Antitrust Issues Courts most often accept MFC clauses as legitimate contract provisions that can have positive effects on competition. However, MFC clauses may present antitrust issues if they risk injuring competition, for example, by: Raising rival buyers' costs of doing business.

Favored nations clauses are relatively simple to describe: they are a contractual commitment that no other relevant party will receive better (or more advantageous) terms from the party making the commitment.

The Most Favored Customer (MFC) clause is a common arrangement in many commercial contracts intended to ensure the customer receives the best price the company provides to its other customers.

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Alameda California Most Favored Customer Clause

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Can the supplier offer better terms to another customer with the Most Favored Customer Clause?

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