A Memorandum of Understanding sample can help a great deal in crafting the perfect memorandum. This article beneath will throw some light on this issue.
Wherever, there is any kind of a formal agreement or contract of understanding between two parties, a written document stating the terms clearly is made. This is a contract or in some cases such an agreement is made concrete through a Memorandum of Understanding (MOU). As mentioned, this is drawn up for establishing a clear understanding of how a deal is going to be implemented, practically. It also includes the clear distinction of functions and the degree of involvement of the parties involved. Primarily, it gives a chance to all of those involved in the agreement to see on paper as to what they all have agreed to. It also serves as a concrete reference in case there is a legal problem in a business partnership. A Memorandum of Understanding sample is provided in this article for a better perspective.
Primarily, the template of a MoU includes:
- The date of the MoU
- Description of situation of parties and their relationship with each other
- Communication details of the parties involved
- Compensation details, like who handles the money and how people are going to be paid and the like
- Terms of agreement
- Any other issues
These are the basic things included. This seems fine to read, but still might not give you an idea of how this document looks like, so here is a sample.
MEMORANDUM OF UNDERSTANDING
The Parties to this Memorandum of Understanding (MoU) agree to the following
Article 1 : Purpose and Scope
Article 2 : Conditions and Arrangements
Article 3: Timing
Article 4 : Future cooperation
The present MoU elucidates the general conditions and arrangements for future cooperation between the concerned parties. It is not legally binding on the parties. The exact terms and conditions of this future cooperation will be negotiated in due course and laid down in a contract, should circumstances permit.
For and on behalf
For and on behalf
Now, this is usually accompanied by a letter of intent and an agreement to keep the contract confidential. Here is how that looks.
MOU and Confidentiality Agreement
An MoU cannot be complete without this confidentiality agreement, in case of a joint venture. A sample agreement for your perusal.
LETTER OF INTENT AND CONFIDENTIALITY AGREEMENT
The parties are in the process of negotiating a Joint Venture agreement, whose purpose is
Pending the possible signing of a Joint Venture agreement, all parties agree to hold in strict confidence all commercial and trade information exchanged and further, neither party shall act upon such information exchanged to the detriment of the other party, such obligation constituting a separate and distinct right not dependent on the enforceability of this letter of intent. The joint venture agreement shall be signed by___________, failing which all parties are free to pursue other alternatives, as they deem proper without any responsibility to the other party.
Signed in__________________ [Town, Country] on______________ [Date].
This was a very generic example, along with the letter of intent. This in no way is the ultimate guideline to how to write or format an MOU.
To conclude, you can find a number of templates on the Internet and other sources. But the best bet is to take a look at a sample and approach a legal adviser. He will help you out. All the best!