MEMORANDUM OF UNDERSTANDING
A memorandum of understanding (MOU) is a nonbinding agreement between two or more parties outlining the terms and details of an understanding, including each parties’ requirements and responsibilities. An MOU is often the first stage in the formation of a formal contract.
A memorandum of understanding (MOU) is not legally binding but is viewed as a serious document by the law. In the United States, an MOU is the same as a letter of intent, which is a nonbinding agreement stating a binding agreement will soon follow. MOUs are most often used as part of multinational international relations because, unlike treaties, they are quick and can be kept secret. However, MOUs can also be used as a tool to modify existing treaties and domestically.
MOUs are common, both domestically and abroad. They vary in length and complexity, but each understanding represents mutually accepted expectations between people, organizations or governments. Other key similarities between all MOUs is they are not legally binding and do not involve the exchange of money.
An MOU signals a legal contract is imminent. However, an MOU itself is not legally defensible but should still clearly outline specific points of an understanding. An MOU should describe who the parties are, what the project is they are agreeing on, the scope of the document, each parties’ roles and responsibilities and more. While an MOU is not legally binding, it can help two parties move in the right direction toward an agreement.
An MOU, while not an enforceable document, still holds a lot of power because of the time, energy and resources needed to draft an effective and fair document. An MOU forces the participating parties to reach a semblance of a mutual understanding, and in the process, the two sides naturally mediate and figure out what is most important in moving toward an eventual future agreement that benefits both sides.
Easydrafting.in role in providing Memorandum of Understanding:
|PREPARATION TIME||2 days after we receive the details for preparing the Memorandum of Understanding|
|VALUE OF THE STAMP PAPER||Rs. 10 or Rs. 100 (Will be provided by us)|
|NOTARY||Required (Will be provided by us)|
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