Document background
A Memorandum of Intent is commonly used in complex commercial transactions governed by English and Welsh law where parties need to document their preliminary understanding before committing to a formal agreement. It serves as a crucial stepping stone in negotiations, particularly in mergers, acquisitions, joint ventures, and significant commercial partnerships. The document typically includes the proposed structure of the transaction, key commercial terms, and any binding obligations such as confidentiality or exclusivity. While maintaining flexibility, it provides a clear framework for negotiations and helps prevent misunderstandings between parties.
