-
Memorandum of Understanding (MOU)
A memorandum of Understanding, Popularly called as MOU, is declaration to world and put it in writing that two or more parties have agreed to work together for a purpose. Although an MOU is not legally binding but it states expression of interest among the parties and that the parties are willing to work together for a specific purpose.
-
What MOU Signifies:
- That parties are willing to work together
- Communicates expectation of parties in such co-operations
- Although MOU is not legally binding, it signals that formal contract is forthcoming.
- Sets boundaries of Contractual terms.
One of the biggest advantage of having MOU is, it sets broader terms of contracts between the parties at the same time the dis-advantage is that the MOU remains as expression of interest and not legally binding.
-
Key points in MOU:
-
Purpose :
The MOU shall clearly state the purpose for which the parties have join hands and scope of each party in the purpose. What each party is hoping to achieve.
-
Goal :
The MOU should state what is ultimate objective to be achieve collectively
-
Level of Co-Operations :
The document should clearly mention on a broader terms
-
Considerations :
Each party may have different consideration in the MOU, however the same should be mentioned in the MOU document.
-
Intention of parties to convert this MOU into a legally binding contract.
-
Business Support Agreements
For expansion or augmentation of one’s business working with another business associate/s to have mutual exclusive activities yet achieve a common goal is inevitable. A business co-operation can be in any form such as manufacturing-sales arrangement, long term sales –purchase agreement, sharing of resources , providing / receiving services , financial arrangements, etc
-
Contents
-
Preamble :
Generally pre-able describes the background of cooperation and details of the parties who are willing to co-operate.
-
Duties :
This section elaborates the duties and responsibilities of each party.
-
Payment :
The payment consideration between parties, when and how the consideration shall be transferred to the other party
-
Exit :
Although exit is not preferred outcome for any agreement, however the agreement shall have an exit route if the things does not work out
-
Other Terms :
The details terms and conditions of business for which the co-operation is entered
-
Our Expertise
Having experience in business, we very well understand that the co-operation is essential for the business and roles and responsibilities of each party. Each party is required to protect its interest in the prime business
We are expert in Contracts Law, therefore understands how to bind another party lawfully. Having drafted and negotiated various Business Co-operation agreement our expert will make you more comfortable while drafting or negotiating.
