21 February 2008
A Memorandum of Understanding (MoU) is a legal 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 and may not imply a legal commitment. It is a more formal alternative to a gentlemen's agreement, but in some cases, depending on the exact wording, lacks the binding power of a contract
14 October 2008
An agreement needs the following essentials, (a) A proposal/offer (b) An acceptance (c) A promise (d) A consideration for the promise A MOU must (1) identify the cotracting parties (2) spell out the subject matter of the agreement and its objectives (3) summarize the essential terms of the agreement and (4) must be signed by the contracting parties.Such an agreement and MOU have the same legal effect.
21 July 2009
Yes, technically both are different. while agreement is a legally binding enforceable document the MOU is written by way of understanding reached between the parties. Normaly MOU precedes a written agreement. Subsequent to MOU, If parties find that they can now continue there relationship by way of a formal contract they convet the MOU in a written agreement.