A memorandum of understanding is a document that is often used for mergers and acquisitions and records the preliminary terms of an agreement. Although non-binding, the Memorandum of Understanding provides an important overview of the main terms agreed by the parties to the transaction. The Memorandum of Understanding describes the details of an agreement between two or more parties who intend to work together towards common goals. Mou is also a complex process and more detailed than a contract, while providing a framework. The Memorandum of Understanding may stipulate that the parties “agree to promote and support facilities sharing.” Ultimately, the information recorded in the Memorandum of Understanding is part of the final sales contract that legally defines the transaction; It describes what you can talk about outside of this negotiation and what you can`t talk about, and it provides a roadmap that outlines how things will continue. Term Sheet: The Term Sheet is a non-binding expression of interest from a buyer that sketches the price and structure of a transaction. It is usually used in larger transactions in which the parties are more demanding and for which a company is marketed without a price. Its role is to determine if the parties agree on the price and structure of the transaction before both parties invest a lot of time and money in professional fees. Assuming they generally agree, the buyer will file either a Notice of Intent or an AP. A roadmap is usually one to five pages. These arguments do not work. The requirement of good faith in section 42 is not a principle that the parties must establish in writing; This is a legal requirement that applies to all parties negotiating contracts in China. This is an obligation that is completely independent of the agreement of the parties.

More importantly, the requirement of good faith applies to the conduct of the parties, not to what they say in a written document. That is why a court will examine the underlying conduct of the parties in order to determine whether there is liability. Thus, the selfish statements of a party that there is no responsibility are ignored. Worse, such statements could be seen as part of the plan to deceive the Chinese party about the US company`s bad faith intention to harm….