MOU
ishaniduggal
(Querist) 07 April 2011
This query is : Resolved
wat is the difference between Memorandum of Understanding and Agreement.. What are shall we consider while drafting the two.??
Kirti Kar Tripathi
(Expert) 07 April 2011
A memorandum of understanding (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 is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal
Agreement is meeting of minds (or an evidence of mutual accord or understanding) between two or more legally competent parties, about their relative duties and rights regarding current or future performance. Although a contract can (and often does) result from an agreement, an agreement typically documents the give-and-take of a negotiated and a contract specifies the minimum acceptable standard of performance.
Thus memorandum of understanding has no legal force, whereas agreement has binding effect on parties.
