Document background
The Memorandum of Intent is a crucial preliminary document used in Philippine business practice when parties wish to formally express their intention to enter into a future agreement without immediately creating full contractual obligations. It serves as a stepping stone between initial discussions and final binding agreements, typically used in scenarios such as potential joint ventures, major commercial transactions, or strategic partnerships. The document outlines key principles and expectations while keeping most terms non-binding, except for specific provisions like confidentiality and exclusivity. Under Philippine jurisdiction, while a MOI is not fully binding, it carries legal weight in establishing the parties' good faith intentions and can influence the interpretation of subsequent agreements. The document typically includes proposed transaction structures, timelines, and basic terms, providing a foundation for detailed negotiations while protecting both parties' interests during the preliminary phase.
