Document background
The Memorandum of Interest is a crucial preliminary document in Nigerian business practice, typically used when parties wish to formally express interest in a potential opportunity while maintaining flexibility for negotiations. This document type is particularly relevant in scenarios where detailed due diligence or complex negotiations are anticipated, such as property acquisitions, business investments, or major commercial transactions. The memorandum helps establish clear communication channels and basic terms while protecting confidential information exchanged during preliminary discussions. Under Nigerian law, while generally non-binding in nature, the document must still comply with basic contractual principles and may require stamp duty payment depending on its use. It serves as a stepping stone toward more formal agreements while providing a structured framework for initial engagement between parties.
