Meaning of “naked contract” in the English Dictionary

"naked contract" in Business English

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naked contractnoun [ C ]

uk us

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.

(Definition of “naked contract” from the Cambridge Business English Dictionary © Cambridge University Press)