Document background
The Simple MOU serves as an essential preliminary document in Philippine business practice, commonly used when parties wish to formalize their initial understanding before entering into more detailed, binding agreements. This document type is particularly relevant in the Philippine context where business relationships often begin with formal but non-binding commitments. The Simple MOU typically includes key terms, responsibilities, and objectives while maintaining flexibility and avoiding legally binding obligations (unless specifically stated). It must conform to Philippine legal requirements, particularly those outlined in the Civil Code of the Philippines regarding contract formation, while serving as a foundation for future detailed agreements. This document is especially useful in cross-border transactions, joint ventures, and public-private partnerships where parties need to document their preliminary understanding while conducting due diligence or negotiating final terms.
