A Memorandum of Understanding is a preliminary contract with the same characteristics as a security contract, and determines the rules of conduct to be observed by signatories when carrying out business in the future.
The purpose of signing a Memorandum of Understanding varies according to the key aspects that the parties intend to ensure in their preliminary negotiations. This kind of Memorandum is widely used by investors who are seeking to carry out business together.
As long as there are no conditions of repentance – nor occurrence of any resolutive conditions –, either party will have the right to demand execution of the final contract.