Document background
The Memorandum of Intent (MOI) is a crucial preliminary document in Australian business practice, commonly used when parties wish to formalize their initial understanding without creating full contractual obligations. It serves as a stepping stone between informal discussions and binding agreements, typically employed during the early stages of business negotiations, mergers, acquisitions, joint ventures, or strategic partnerships. The document outlines key commercial terms, timelines, and basic frameworks while maintaining flexibility for future negotiations. While predominantly non-binding, certain provisions like confidentiality can be made explicitly binding. The MOI helps parties align their expectations, document their preliminary agreements, and establish a clear pathway toward a definitive agreement, all while operating within the Australian legal framework.
