Document background
The Memorandum of Interest serves as a crucial preliminary document in Australian business transactions, used when a party wishes to formally express interest in a potential opportunity while maintaining flexibility before committing to binding obligations. This document type is particularly valuable in scenarios where parties need to demonstrate serious intent while still requiring time for due diligence, detailed negotiations, or internal approvals. The Memorandum of Interest typically precedes more formal agreements such as Memorandums of Understanding or definitive agreements, and while governed by Australian law, it generally remains non-binding except for specific provisions like confidentiality. It's commonly used in corporate acquisitions, property developments, investment opportunities, and major commercial transactions where a formal expression of interest is required as part of the preliminary negotiation process.
