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Difference between Agreement and MOU (Legal Documents)

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This query is : Resolved


Author : Anil

Posted On 22 September 2008 at 07:17

Please anyone let me know



1) The difference between an Agreement and MOU.



2)In what circumstance Agreement is used and in what circumstance MOU is used.



Thanks.





Expert : J K Agrawal

Posted On 22 September 2008 at 09:41

Agreement contains proposal and its acceptance and intention of parties is to bind each other with the terms of agreement. It is intention of parties that if any one violets the terms other will go to court and get it enforced.

MOU is Memo Of Understanding. Both parties proposed their intention and a commitment to follow the intention in future. It does not create a valid contract. But if one party do any thing on reliance of MOU and sustains any loss he can recover back losses but can not get enforced the MOU. The The Both Parties of MOU are bind by estoppel and any of them can not take adverse stand.



Expert : Adv.Shine

Posted On 22 September 2008 at 10:29

According to Indian Contract Act an agreement needs the following essentials.(a)a valid proposal or offer (b) an acceptance (c) a promise (d) consideration for the promise.
A MOU must (a) identify the contracting parties (b) spell out the subject matter of the agreement and its objectives (c) summarize the essential terms of the agreement,and (d) must be signed by the contracting parties.
MOU is like a contract,but it does not have to carry the same legal weight.If the wordings used in the MOU are vague and unclear and do not create any binding effect,then the same cannot be enforced.



Expert : Member (Account Deleted)

Posted On 22 September 2008 at 15:36


Agreement : the act or fact of agreeing b: harmony of opinion, action, or character : concord


memorandum of understanding (MOU or MoU) is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It most often is used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforcement agreement. It is a more formal alternative to a gentlemen's agreement



Author : Anil

Posted On 22 September 2008 at 19:33

Thank you sirs



Expert : Murali Krishna

Posted On 22 September 2008 at 22:28

Some time back, Manish Singh answered a similar question.

J.K.Agarwal's answer gave further clarification.



Expert : dinesh

Posted On 08 September 2009 at 13:34

Yet, the difference between the MOU and Agreement is a thin one. It is an established law law that the nomenaclautre is not important iot is the pith and substance of document, intentions of the parties and nature and contents of documents that determine its chaaracter. If it established that it is only an MOU then also it is of binding if the parties have acted upon it (even partially).riven


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