Document background
The MoU Supply Agreement is commonly used in German business practice as a preliminary step before entering into a formal supply contract. This document type is particularly valuable when parties need to establish the framework for complex supply relationships while maintaining flexibility during negotiations. The MoU Supply Agreement typically includes essential terms such as product specifications, pricing principles, delivery terms, and quality requirements, while clearly stating its non-binding nature except for specific provisions like confidentiality. Under German law, while the document itself is primarily non-binding, certain obligations created within it can be legally enforceable, making it important to carefully draft provisions regarding confidentiality, exclusivity, and costs. This document is especially useful in situations requiring detailed due diligence, complex negotiations, or when parties need to demonstrate commitment to their business relationship while finalizing technical and commercial details.
