Document background
The Memorandum of Understanding (MoU) Between Two Companies is a crucial preliminary document in Indian business practice, commonly used when organizations are exploring strategic partnerships, joint ventures, or collaborative arrangements. It serves as a roadmap for future business relationships, documenting the parties' intentions and basic terms of cooperation before committing to detailed binding agreements. While generally non-binding under Indian law (except for specific clauses like confidentiality), it helps establish clear communication channels, basic responsibilities, and expectations. Companies typically use this document during the early stages of business relationships, particularly when detailed due diligence or complex negotiations are anticipated. The MoU structure accommodates various industry requirements while adhering to Indian legal frameworks, including the Indian Contract Act, 1872, and relevant sector-specific regulations.
