Document background
A Memorandum of Understanding For Supply of Goods is typically used when parties wish to document their intentions and understanding before entering into a formal supply agreement. It's particularly valuable in complex supply arrangements where parties need to establish clear expectations and commercial terms before committing to a binding contract. Under English and Welsh law, this document helps parties align their understanding of key commercial terms, quality standards, delivery arrangements, and other crucial aspects of the supply relationship. While primarily non-binding, it serves as a valuable reference point for drafting the final agreement and can help avoid misunderstandings during negotiations.
