Amide formation between mildly activated esters and 1,2-amino alcohols occurs without the need for coupling reagents. The reaction pathway involves facile intermolecular transesterification and intramolecular O→N transacylation. The method is environmentally friendly and offers no risk of racemization via highly activated acylating intermediates. Exploiting a surprisingly easy initial transesterification process, amides are formed from hydroxyamines and lactones or cyanomethyl esters. Reactions occur rapidly without risk of racemization. Copyright © 2012 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim.