Document background
The Memorandum of Intention serves as a crucial preliminary document in Dutch business and legal practice, typically used when parties are contemplating significant business arrangements but aren't ready to enter into binding commitments. It bridges the gap between informal discussions and formal agreements, providing a structured framework for future negotiations while maintaining flexibility. This document type is particularly valuable in complex transactions where parties need to document their preliminary understanding, establish basic parameters for negotiation, and potentially include certain binding provisions (such as confidentiality) while keeping the overall arrangement non-binding. Under Dutch law, special attention is paid to pre-contractual liability principles, making it essential to clearly distinguish between binding and non-binding provisions within the memorandum.
