Document background
The Memorandum of Understanding serves as a crucial preliminary document in the UAE business environment, where formal relationship establishment often follows a stepwise approach. This document type is particularly valuable in the UAE context where business relationships typically begin with formal documentation of intentions before proceeding to binding contracts. The MOU outlines the parties' proposed collaboration, key terms, and conditions while maintaining flexibility for future negotiations. It typically includes provisions for confidentiality, exclusivity if required, and good faith negotiations, all aligned with UAE Civil Code requirements. While primarily non-binding, certain provisions can be specifically designated as legally enforceable, making it a versatile tool for business relationship development in the UAE market.
