Document background
The Memorandum Of Understanding Between Two Partners is a fundamental document in South African business practice, commonly used to formalize preliminary agreements and partnerships before entering into more detailed contractual arrangements. This document type is particularly valuable when organizations wish to establish collaborative frameworks while maintaining flexibility in their relationship. It serves as a stepping stone to more formal agreements while providing clear documentation of the parties' intentions and basic obligations. The MOU is structured to comply with South African common law principles and relevant statutory requirements, making it suitable for both domestic and international partnerships involving South African entities. While not as legally binding as a full contract, it provides important protection for both parties by clearly documenting their mutual understanding and basic terms of cooperation.
