Focus on the pronunciation of naked contract
English definition of “naked contract”
› (also nude contract, or formal nudum pactum) LAW an informal agreement that is not considered legal in a court of law: A naked contract is not enforceable.
› STOCK MARKET an agreement for options (= the right to buy shares, etc. in the future at a fixed price) for which the seller does not have the related shares: There are risks associated with writing naked contracts that one is unable to deliver.