Document background
The MOU Between Buyer And Seller is a crucial preliminary document used in South African commercial practice when parties are exploring a potential business relationship but are not yet ready to enter into a binding agreement. It serves as a roadmap for negotiations and future dealings, typically used in situations where parties need to document their preliminary understanding while conducting due diligence, negotiating detailed terms, or seeking necessary approvals. The document, while generally non-binding under South African law, commonly includes certain binding provisions such as confidentiality and exclusivity. It's particularly valuable in complex transactions where parties need to outline their intentions and commercial understanding before committing to a definitive agreement, while ensuring compliance with South African commercial law and regulatory requirements.
