Mou Between Buyer And Seller Template for Germany

The MoU Between Buyer And Seller serves as a crucial preliminary document in German commercial transactions, establishing the foundation for negotiations and potential future binding agreements. This document is typically used when parties have reached a basic understanding of a transaction's key terms but require a structured framework before proceeding to detailed negotiations and due diligence. Under German law, while most provisions are non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding. The document reflects German legal principles, including the good faith requirement (Treu und Glauben) and incorporates relevant provisions from the German Civil Code (BGB) and Commercial Code (HGB). It's particularly valuable in complex transactions where parties need to document their preliminary understanding while maintaining flexibility for detailed negotiations.

1. Parties: Identification and details of the buyer and seller, including full legal names, registration numbers, and registered addresses

2. Background: Context of the proposed transaction and relationship between the parties

3. Definitions: Key terms used throughout the document

4. Purpose and Scope: Clear statement of the MoU's objective and the broad parameters of the proposed transaction

5. Principal Terms: Outline of the key commercial terms including proposed transaction structure, pricing principles, and timeline

6. Due Diligence: Framework for information exchange and evaluation process

7. Confidentiality: Obligations regarding the protection and use of confidential information exchanged

8. Non-Binding Nature: Clear statement that the MoU is non-binding except for specified clauses

9. Binding Provisions: Identification of which provisions are legally binding (typically confidentiality, costs, and governing law)

10. Duration and Termination: Period of validity and circumstances for termination

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution details