Document background
The Memorandum Of Understanding Between Two Partners is a preliminary agreement commonly used in Malaysian business practice to establish the groundwork for future collaboration. This document type is particularly valuable when parties wish to formalize their intentions and basic understanding before entering into more detailed, binding agreements. It typically includes sections outlining the scope of cooperation, basic responsibilities, and key terms while maintaining flexibility. Under Malaysian law, while most MOU provisions are generally non-binding, certain sections like confidentiality can be explicitly made binding. This document is especially useful in cross-sector partnerships, joint ventures, and strategic alliances where parties need to define their relationship's parameters while conducting due diligence or negotiating detailed terms.
