Memorandum of Understanding (MOU) is a formal agreement between two or more parties outlining the details and terms of an understanding. An understanding means and includes requirement and responsibilities of each parties under a common line of action or business. Companies and organizations are the common parties under these agreements which establish official partnerships.
MOU is an agreement which clarifies the objective or mission of partnership, Purpose and scope of intended parties, Contribution towards object, Responsibilities and obligations of the parties, Time line of stated objective or scope, Terms of understanding, Amendment or Cancellation of this memorandum and others. As MOU is short written Statement or agreement between two or more parties who agree to do or not to do certain things in future. MOU also known as “Letter of Intent” which can be used for diplomatic communication between the parties.
Memorandum of Understanding is as complicated documents that establish informal agreement and legally binding Contracts. An MOU, itself is not legally defensible but should still clearly outline the specific points of an understanding. This is an bilateral and multilateral agreement which shows that business partners are serious about taking he nex steps towards a mutually beneficial agreement.
Sabkuch Legal may give you Legal Advice to help determine the enforceability of your Memorandum of Understanding.