Document background
The Simple Memorandum of Understanding is a versatile document used in German business and legal practice to formalize preliminary understandings between parties before entering into binding commitments. It is particularly valuable in situations where parties need to document their intentions and proposed cooperation framework while maintaining flexibility for future negotiations. Subject to German law, this document type incorporates key principles of German legal practice such as good faith (Treu und Glauben) and pre-contractual obligations, while typically remaining non-binding in nature. The Simple Memorandum of Understanding is commonly used in business partnerships, joint ventures, research collaborations, and other scenarios where parties need to establish clear communication and understanding before proceeding with formal agreements. It typically includes provisions for confidentiality, project scope, resource allocation, and timeline considerations, while clearly stating its non-binding nature to avoid unintended legal obligations.
