Document background
The Memorandum Of Understanding Between Supplier And Buyer is a crucial preliminary document used in Indian business contexts when parties wish to formalize their intention to enter into a business relationship without immediately creating binding obligations. This document is particularly valuable during the negotiation phase of supplier-buyer relationships, providing a structured framework for further discussions while protecting confidential information exchanged during negotiations. It typically includes provisions for the scope of cooperation, basic terms of engagement, and any exclusivity arrangements, while maintaining flexibility for the parties to develop more detailed agreements. The MoU's jurisdiction under Indian law ensures compliance with local legal requirements, including the Indian Contract Act, 1872, and other relevant commercial legislation. It serves as a roadmap for the development of future binding agreements while documenting the parties' preliminary understanding and intentions.
