Contracts Commons^™

Compliance With Most Favored Customer Clauses: Giving Meaning To Ambiguous Terms While Avoiding False Claims Act Allegations, Mitchell S. Ettinger, James C. Altman

Notre Dame Law Review Reflection

Federal and state contracting authorities more frequently are including Most Favored Customer (MFC) clauses in contracts for procurement of privately manufactured products. These clauses seek to ensure that the contracting authority (typically a federal or state agency) receives at least as favorable pricing as other customers making similar purchases. For example, the government agency may request that the contractor warrant that the prices it charges under the contract will be as favorable as those offered to other parties purchasing similar products of similar quantity under similar terms and conditions. In theory, the request to be treated equally to others making …