![]() ![]() Also, it should provide for the circumstances in which such memorandum will be terminated. The memorandum should specify the duration of such an agreement between the parties i.e the beginning and the ending dates of the memorandum. Once the MOU is prepared and agreed upon by parties involved, it should be signed and dated by the authorized individuals representing each party or organization.ĩ. The role, responsibilities, and remuneration should also be mentioned.Ĩ. Management: The memorandum may provide for the appointment of the persons to take care of the day to day operations of the program. The financial record keeping of the assignment/program being undertaken should also be maintained.ħ. It should also mention the person authorized to make the major financial decisions.Ħ. The memorandum should specify the amount of capital contribution to be made by the parties.ĥ. ![]() ![]() the parties can decide to meet at least once in a quarter.Ĥ. It should specify the plan for the meetings between the parties. It should clearly specify the purpose and the goals for which the memorandum is being signed.ģ. It should specify the name & other details of the parties between whom memorandum of understanding is being signed.Ģ. Features of MOU:Ī Memorandum of Understanding should have the following features:ġ. It does not constitute a legally enforceable obligation but, this non-legally binding MOU may be useful to serve as an agreement between two or more departments within a single public entity. MOU’s can be kept confidential by the parties, if desired. It is used to gauge the intention of the transacting parties before a deal is officially signed between them and doesn't grant either of them any rights. It is made when two or more parties outlining the rights and obligations of the parties to the agreement are into initial discussions. A Memorandum of Understanding or MOU Agreement is entered into when parties have agreed to enter into a contract, but the formalities (such as terms and conditions) of the contract are yet to be negotiated. Memorandum of understanding (MoU), also known as Letter of Intent in India, is just a means for two parties to reach a decision. If you need to rely on the other organisation taking certain actions or if your organisation stands to lose money if the other party doesn’t act – your organisation should enter into a contractual arrangement.What is MOU? What is Memorandum of Understanding? To help avoid any uncertainty about whether an MOU is legally binding, your organisation should make sure the MOU contains a specific statement to the effect that it is not intended to create legally binding obligations. An MOU is therefore usually more of a 'high level' agreement.Īn MOU is generally considered ‘an agreement to agree’ or an agreement to enter into a more specific and comprehensive contract or agreement at a later time after further negotiations. In general, an MOU will not deal with the specific details of particular projects. Before reading further, see our guide to working with other organisations.Īn MOU will typically establish a framework for the collaboration between the organisations and express the common goals or vision of the parties to the MOU. ![]()
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