Mou
Querist :
Anonymous
(Querist) 16 December 2011
This query is : Resolved
Dear Professionals,
I have a query regarding Memorandum of Understanding.
We are planning to sell off our land to 1 party.It seems that the party is not able to pay the entire consideration at once,they have committed to make entire payment in installments which will take few months in realisation of the total agreed amount.Thus, we have decided to go ahead with MOU so as to ensure some binding on the party regarding execution of deal agreed upon.
Now,my query is,what if they don't keep their committment & meanwhile back out from the agreed deal due to any reason,I mean do they have any legal binding of execution of the deal after signing MOU or they can revoke their interest anytime.Whats the exact scope of MOU,pls explain.
Raj Kumar Makkad
(Expert) 17 December 2011
Such MOU should be got registered before registrar containing the terms that if either of the party violates any of the term mentioned therein, other party shall have a right to go to civil court seeking enforcement of the MOU at the cost and expenses of the defaulting party.
Shailesh Kr. Shah
(Expert) 17 December 2011
Execute Agreement to sale and registered the same, if either party differs, one can go for specific performance.
prabhakar singh
(Expert) 17 December 2011
Why MOU why not agreement to sale that too registered with clear stipulation that time would be the essence of contract and failure to pay any of the installments of consideration shall be construed strictly as default and would be payable with 15% interest charges at the time of subsequent due installment or earlier and in case of any three consecutive default in payment of installments the agreement shall stand strictly cancelled and amount paid in advance shall stand forfeited without any further notice.Make agreement and call MOU then no problem but make MOU and call agreement then there are plainly problems and problems.Hence do not feel thrill in the buzzword "MOU" as now a days it has become.Let it be used for what it has been evolved as gentleman commitment not enforceable at law.
