Document background
The Memorandum of Understanding Between Two Partners is a crucial preliminary document used in the UAE business environment when parties wish to document their intention to enter into a formal business relationship. This document type is particularly relevant in the UAE market where business relationships often develop through staged approaches, allowing parties to establish trust and understanding before entering into binding commitments. It typically includes provisions for confidentiality, basic terms of the proposed partnership, and timeline for further negotiations, while respecting UAE legal requirements and business customs. The MOU serves as a roadmap for future negotiations while providing flexibility for parties to refine their arrangements before committing to a definitive agreement. It's especially useful in complex transactions where detailed due diligence and regulatory approvals may be required before finalizing a binding agreement.
