Memorandum of Understanding (MOU)

This document is a template Memorandum of Understanding (or briefly a "MOU") made under Cyprus law, customarily entered into between commercial parties in the context of a proposed transaction, at the time where negotiations are ongoing and prior to the entering into of a formal agreement. The provisions of the MOU are non binding on the parties except where specifically stated therein. Such an MOU will operate, on the one part, to solidify the intention of the parties to enter into tranasaction documents and, on the other part, to create legally binding obligations on confidentiality and perhaps, exclusivity between the parties. This particular draft sets out the context of the proposed transactions, the duration of the MOU, material agreed terms, such as the price, due diligence and information disclosure, confidentiality,  exclusivity between the parties and other miscellaneous terms. An MOU can be used interchangeably  and has the same effect as a Letter of Intent (or "LOI"), or a Head of Terms all of which achieve the same objective but have a somewhat different format.