Document background
The Memorandum Of Understanding For Supply Of Goods is commonly used in Nigerian business transactions as an initial document to establish supply relationships between companies. It serves as a foundational agreement that outlines the basic commercial understanding between parties before proceeding with more detailed supply contracts. This document type is particularly useful when parties wish to formalize their intent to enter into a supply arrangement while still negotiating specific details. It typically includes essential elements such as the nature of goods, general pricing principles, delivery frameworks, and basic quality requirements, while remaining flexible enough to accommodate future modifications. Under Nigerian law, while not as legally binding as a full supply agreement, it creates a framework for the business relationship and can be referenced in subsequent detailed agreements. This document is especially relevant in the current Nigerian business environment where companies increasingly seek to formalize their supply chain relationships while maintaining flexibility in their commercial arrangements.
