Document background
The MoU Supply Agreement is typically used when parties wish to formally document their intentions and understanding regarding a supply relationship before committing to a definitive agreement. This document is particularly valuable in complex supply arrangements where parties need time to finalize technical details, conduct due diligence, or obtain internal approvals. Under Dutch law, while most provisions of an MoU are non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding. The document typically includes preliminary commercial terms, quality requirements, timeline for negotiation, and next steps toward a definitive agreement. It's especially useful in international trade contexts where Dutch law provides a neutral and well-established legal framework aligned with EU regulations and international commercial practices.
