Document background
The Memorandum of Understanding Between Supplier And Buyer is a crucial preliminary document used in Malaysian business transactions to establish the framework for commercial relationships before entering into binding contracts. This document is particularly valuable when parties need to outline their initial understanding while conducting due diligence, negotiating detailed terms, or seeking internal approvals. It operates within the Malaysian legal framework, incorporating considerations from the Contracts Act 1950, Sale of Goods Act 1957, and other relevant legislation. While generally non-binding, it can include specific binding provisions such as confidentiality and exclusivity clauses. The document serves as a roadmap for future negotiations and helps prevent misunderstandings by clearly documenting the parties' intentions and basic commercial terms.
