Document background
The Memorandum Of Understanding Between Supplier And Buyer is a crucial preliminary document used in Philippine business relationships to establish the foundation for commercial supply arrangements. It serves as a stepping stone toward more formal agreements while documenting the parties' intentions and basic understanding of their business relationship. This document type is particularly relevant when parties want to formalize their preliminary discussions and outline basic terms without creating full contractual obligations. The MOU typically includes essential elements such as basic commercial terms, quality standards, and operational frameworks, while maintaining flexibility for future detailed agreements. It should comply with Philippine commercial law principles, particularly those found in the Civil Code and related commercial legislation, while reflecting local business practices and customs. This document is commonly used during the early stages of business relationships, during negotiations of more detailed agreements, or when parties wish to maintain a flexible arrangement while establishing key principles of their cooperation.
