MOU and MOA

G Parthasarathy (Querist) 21 April 2011 This query is : Resolved
Pls suggest the difference and its importance of Memorandum of Understanding and Memorandum of Articles.

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Guest (Expert) 21 April 2011
MOU is just like an agreement through which two parties, organizations or the Governments agree to undertake to do do some activities in their mutual interest, whereas the MOA, is the initial document of a company that consists of aims & objects of the proposed company or established company, based on which the business of a company is to be carried out.

BALAJI S N (Expert) 22 April 2011
Memorandum of Understanding

A memorandum of understanding (MOU) is a legal document describing a bilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action, rather than a legal commitment. It is a more formal alternative to a gentlemen’s agreement, but generally lacks the bind power of a contract.

Memorandum of Agreement

A memorandum of agreement (MOA) or cooperative agreement is a document written between parties to cooperatively work together on an agreed upon project or meet an agreed upon objective. The purpose of an MOA is to have a written understanding of the agreement between parties. The MOA can also be a legal document that is binding and hold the parties responsible to their commitment or just a partnership agreement.

Regards
BALAJI
B.A. LLB (CS)

M V Gupta (Expert) 23 April 2011
Well Explained by Mr. Balaji. MOU is generally made to set out the course of action each party agrees to undertake before the actual Agreement is executed. The MOU charts out the action to be taken by each party such as obtaining of permissions. licenses and any other acts deeds and things each party has to do before the actual agreement is executed. If any of the contemplated actions or permissions etc could not be done/obtained, the parties are at liberty to call off the deal without any claims against each other for damages etc.

Sri Vijayan.A (Expert) 26 April 2011
I agree with Mr.Dhingra

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