Document background
The Memorandum of Intent (MOI) is a crucial preliminary document used in various business contexts under Belgian law when parties wish to formalize their intentions before entering into detailed negotiations for a definitive agreement. It serves as a framework document that outlines the basic terms and conditions of a proposed transaction or relationship, while typically maintaining a non-binding nature except for specific provisions such as confidentiality and exclusivity. The document is particularly relevant in merger and acquisition transactions, joint ventures, strategic partnerships, and other significant business arrangements where parties need to establish clear parameters for their negotiations while managing legal risk. Under Belgian law, while the MOI is generally non-binding, parties must observe the principle of good faith in negotiations, and the document helps establish the scope and boundaries of such obligations.
