Memorendum of Understanding (MoU)
Satyendra
(Querist) 23 January 2009
This query is : Resolved
What is a Memorendum of Understanding (MOU). Please tell me all the details about it.
Why it is made and what the effects of it. Also tell me all the legal consequences after signing MOU.
sanjeev murthy desai
(Expert) 23 January 2009
A MOU is a document describing a bilateral agreement of parties. It shows a convergence of will of 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. MOU can have the binding power of contract.
Adv.Shine Thomas
(Expert) 24 January 2009
The above viewes are correct.In addition to that,MOU is a non-committal written statement detailing the priliminary understanding of the parties who plan to enter into a contract.A MOU must (i)identify the contracting parties (ii)spellout the subject matter of the agreement and its objectives (iii)summarize the essential terms of the agreement,and (iv) must be signed by the contracting parties.If the wordings used in the MOU are vague and unclear and do not create any binding effect,then the same cannot be enforced.
