Document background
An MOU Sales Agreement is typically used in Canadian business contexts when parties wish to formalize their preliminary understanding regarding a potential sales arrangement without immediately entering into a binding contract. This document serves as a stepping stone toward a more comprehensive sales agreement, capturing the essential commercial terms while allowing flexibility for detailed negotiations. It's particularly valuable in complex B2B transactions where parties need to establish clear communication channels and basic terms before committing resources to full contract development. The MOU Sales Agreement includes foundational elements such as product/service scope, preliminary pricing structures, and basic delivery terms, while acknowledging provincial and federal Canadian legal requirements. It's commonly used when parties need to secure internal approvals, conduct due diligence, or align stakeholders before proceeding with a definitive agreement.
