I am guessing it is a non-binding agreement becaus
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Posted On: 08/18/2020 1:26:04 AM
I am guessing it is a non-binding agreement because we are waiting for peptide test results...
Google definition of a non-binding MOU -
In business, an MoU is typically a legally non-binding agreement between two (or more) parties, that outlines terms and details of a mutual understanding or agreement, noting each party's requirements and responsibilities -- but without establishing a formal, legally enforceable contract (though an MoU is often a first step towards the development of a formal contract).[2][3]
__________
If the contracting parties are not prepared to enter into a binding agreement, they might nevertheless consider some kind of non-binding commitment. The possible reasons for this vary considerably. For example:
the anticipated transaction is too complex or too large to negotiate in one single step towards an agreement;
the parties are not yet aligned on the structure or nature of a transaction (e.g. cross-border tax effects remain to be optimised or the transferability of assets and rights must be determined);
a transaction, in whatever form, would be subject to conditions of such importance that it is not efficient pursuing the transaction in its entirety; however, discussions may have reached such stage that outlining some mutually acceptable principles and procedures is possible; or
an agreement is necessary and even entered into, but there are certain post-closing obligations, which can only be agreed upon if other factors are settled, if certain (internal or external) developments have taken place, if certain milestones have been achieved, if a prototype has been delivered and accepted, or if a basis of mutual trust has been established necessary for exploring further extensions to the agreement.
The first three examples may well be cases for a term sheet, letter of intent or memorandum of understanding. The fourth example is often found in (binding) joint venture agreements, joint development agreements, master services agreements and other (long-term) relational contracts: in those agreements, the wording of intent would appear as contractual guidelines, anticipated procedural steps marked by milestone deliverables for decision-making or in the form of (serious but non-binding) intentions and ‘agreements to agree’.
Google definition of a non-binding MOU -
In business, an MoU is typically a legally non-binding agreement between two (or more) parties, that outlines terms and details of a mutual understanding or agreement, noting each party's requirements and responsibilities -- but without establishing a formal, legally enforceable contract (though an MoU is often a first step towards the development of a formal contract).[2][3]
__________
If the contracting parties are not prepared to enter into a binding agreement, they might nevertheless consider some kind of non-binding commitment. The possible reasons for this vary considerably. For example:
the anticipated transaction is too complex or too large to negotiate in one single step towards an agreement;
the parties are not yet aligned on the structure or nature of a transaction (e.g. cross-border tax effects remain to be optimised or the transferability of assets and rights must be determined);
a transaction, in whatever form, would be subject to conditions of such importance that it is not efficient pursuing the transaction in its entirety; however, discussions may have reached such stage that outlining some mutually acceptable principles and procedures is possible; or
an agreement is necessary and even entered into, but there are certain post-closing obligations, which can only be agreed upon if other factors are settled, if certain (internal or external) developments have taken place, if certain milestones have been achieved, if a prototype has been delivered and accepted, or if a basis of mutual trust has been established necessary for exploring further extensions to the agreement.
The first three examples may well be cases for a term sheet, letter of intent or memorandum of understanding. The fourth example is often found in (binding) joint venture agreements, joint development agreements, master services agreements and other (long-term) relational contracts: in those agreements, the wording of intent would appear as contractual guidelines, anticipated procedural steps marked by milestone deliverables for decision-making or in the form of (serious but non-binding) intentions and ‘agreements to agree’.
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