Document background
The Memorandum of Contract is a essential tool in Canadian business and legal practice, used to document preliminary or simplified agreements between parties. It serves as a bridge between informal discussions and formal contracts, providing legal certainty while maintaining flexibility. This document type is particularly valuable in time-sensitive situations where parties need to quickly memorialize their understanding, or in cases where a full contract will be developed later but immediate documentation is required. Under Canadian jurisdiction, while not as detailed as a full contract, a properly drafted Memorandum of Contract can be legally binding and enforceable, provided it contains all essential elements of a valid contract. It's commonly used across various provinces and territories, though practitioners should be mindful of specific provincial requirements that may affect enforceability.
