Document background
The MoU for Joint Venture is a crucial preliminary document used in Austrian business transactions when two or more parties are considering forming a joint business venture. This document serves as a roadmap for negotiations and helps parties align their expectations before committing to a definitive joint venture agreement. It typically includes provisions governed by Austrian law, particularly considering the Austrian Civil Code (ABGB) and Commercial Code (UGB), and outlines key aspects such as proposed ownership structure, management arrangements, contributions, and objectives. While generally non-binding, certain provisions like confidentiality and exclusivity are typically made binding. The document is particularly important in cross-border transactions where Austrian entities are involved, as it helps establish clear understanding between parties from different jurisdictions while ensuring compliance with local legal requirements.
