Document background
The Memorandum of Intention is a crucial preliminary document in Pakistani business practice, commonly used when parties wish to formalize their intentions before entering into a binding agreement. While governed by Pakistani law, particularly the Contract Act 1872, MOIs are typically non-binding documents except for specific provisions like confidentiality and exclusivity. They are particularly valuable in complex commercial transactions, international business dealings, and situations requiring regulatory approvals or due diligence. The document serves multiple purposes: it demonstrates serious intent, provides a framework for negotiations, outlines basic terms and conditions, and establishes timelines. In the Pakistani business context, MOIs are especially important for documenting preliminary understandings while maintaining flexibility for future negotiations, particularly in cross-border transactions where parties need to align their expectations before committing to a formal agreement.
