Document background
The MOU for Purchase of Goods is commonly used in Malaysian commercial practice as a preliminary step before entering into a binding purchase agreement. This document type is particularly valuable when parties need to outline their commercial intentions and basic terms while allowing for further negotiation and due diligence. It typically includes provisions for proposed pricing, quantity, delivery terms, and quality specifications, while maintaining its non-binding nature except for specific clauses such as confidentiality and exclusivity. The document is structured to comply with Malaysian commercial law frameworks, including the Contracts Act 1950 and Sale of Goods Act 1957, and is often used in both domestic and international trade scenarios where at least one party is based in or operating under Malaysian jurisdiction. This type of MOU is particularly useful for complex or high-value transactions where parties need to establish clear parameters for negotiation before committing to a binding agreement.
