Document background
The MoU Distribution Agreement is utilized when parties are exploring a potential distribution relationship but are not yet ready to enter into a formal, binding agreement. This document type is particularly relevant under Belgian law, which provides specific protections for distributors through mandatory provisions. It serves as a roadmap for negotiations and helps parties align their expectations while maintaining flexibility. The document typically includes proposed commercial terms, territorial rights, product specifications, and timeline for finalizing the formal agreement. Being governed by Belgian law, it must consider both domestic legislation (such as the Law of 27 July 1961) and EU regulations on distribution and competition. The MoU Distribution Agreement is especially useful in international trade scenarios where parties need to document their preliminary understanding while conducting due diligence and finalizing commercial terms.
