Document background
The Memorandum Contract (Memorandum) is widely used in Austrian business practice as a versatile legal instrument for documenting mutual understanding and preliminary agreements between parties. It serves as a bridge between informal discussions and final, detailed contracts, providing a legally binding framework while maintaining flexibility. Typically used in business negotiations, joint ventures, cooperation agreements, and preliminary business arrangements, the document must comply with Austrian legal requirements, particularly the ABGB and UGB. The Memorandum Contract is especially valuable when parties need to formalize their intentions and basic terms before proceeding with more detailed agreements, or when they require a flexible yet binding document to govern their relationship.
