Document background
The Memorandum of Understanding For Rental Agreement is commonly used in Malaysia as a preliminary step before finalizing a formal rental agreement. It serves as a documented understanding between parties, typically when there's a need to establish initial terms while certain details are being finalized or during due diligence periods. This document type is particularly useful in complex rental situations, such as commercial property leases, where parties need to document their intentions before committing to a binding agreement. While primarily non-binding, it demonstrates serious intent and can include certain binding provisions such as confidentiality clauses. The document must comply with Malaysian property law, including the National Land Code 1965 and Contracts Act 1950, and typically includes proposed terms for rental amount, duration, property usage, and maintenance responsibilities.
