Document background
The Memorandum of Understanding Between Supplier And Buyer serves as a crucial preliminary document in Indonesian commercial relationships, typically used when parties wish to formalize their intentions before entering into a detailed contract. This document is particularly relevant in the Indonesian business context, where relationship-building and gradual formalization of business arrangements are common practices. It outlines the basic framework of the intended commercial relationship while maintaining flexibility for future detailed agreements. The MoU typically includes key commercial terms, responsibilities, and confidentiality provisions, while being structured to comply with Indonesian legal requirements, particularly the Civil Code (KUHPerdata) and relevant trade regulations. It's commonly used during business negotiations, potential partnerships, or when establishing new supply chain relationships, serving as a bridge between initial discussions and final binding agreements.
