Document background
The Memorandum of Intent (MOI) is a crucial preliminary document in Pakistani business practice, commonly used when parties wish to formalize their intention to enter into a future agreement while maintaining flexibility in negotiations. It serves as a stepping stone between initial discussions and a final binding contract, documenting key commercial terms and establishing a framework for further negotiations. While generally non-binding under Pakistani law, certain provisions like confidentiality can be made explicitly binding. The document is particularly valuable in complex commercial transactions, international business dealings, and situations where detailed due diligence is required before finalizing a binding agreement. It operates within Pakistan's legal framework, particularly under the Contract Act 1872, and can be customized to various business sectors and transaction types.
