Document background
The Memorandum of Understanding For Partnership is a crucial preliminary document used when two or more parties intend to form a business partnership but need to document their initial understanding before proceeding with a formal agreement. Under Austrian law, this document typically precedes more detailed partnership agreements and is particularly useful during the negotiation phase of business relationships. While generally non-binding, it helps parties establish clear expectations, timelines, and responsibilities while protecting confidential information exchanged during negotiations. The document is commonly used in various business contexts, from joint ventures to strategic alliances, and must comply with Austrian legal frameworks, including the ABGB and UGB. It serves as a roadmap for further negotiations and due diligence, while providing a foundation for the eventual formal partnership agreement.
