naked contract
noun[C]
ukusLAW(alsonude contract);(orformalnudum pactum)
aninformalagreementthat is notconsideredlegalin acourtoflaw:
Anakedcontractis notenforceable.
STOCK MARKET
anagreementforoptions(= therighttobuyshares, etc. in thefutureat afixedprice)for which thesellerdoes not have therelatedshares:
There arerisksassociatedwith writingnakedcontractsthat one isunabletodeliver.