18/03/2026
“Sign first. Discuss later.”
This is a common approach when entering into memoranda of understanding.
As MOUs are often regarded as non-binding, they are sometimes treated as carrying minimal legal risk. In practice, however, the position is more nuanced.
Courts consider the substance of the arrangement, including the terms agreed and how the parties conduct themselves.
Even where an MOU is intended to be informal, it may still have implications in the event of a dispute.
It is therefore important to be clear, at the outset, what the document is intended to achieve.
🔗:https://apylaw.com.my/wp-content/uploads/2026/03/APY-MOU-Binding-or-Non-Binding.pdf