Document background
The MOU Distribution Agreement is commonly used in the United Arab Emirates as a preliminary step before entering into a formal distribution relationship. This document serves as a roadmap for negotiations and future binding agreements, particularly useful when parties need to establish basic understanding while conducting due diligence or obtaining necessary approvals. It typically includes proposed commercial terms, territorial rights, and basic obligations while acknowledging UAE commercial regulations and agency laws. The MOU's non-binding nature, except for specific provisions like confidentiality, makes it an ideal tool for complex distribution arrangements where parties need to align their expectations and document their intentions before committing to a definitive agreement. This document type is especially relevant in the UAE market where distribution relationships often require careful consideration of local partnership requirements and commercial agency regulations.
