Civil Procedure Code (CPC)

MOU and an Agreement

This query is : Resolved 

15 February 2008

Is there any difference between MOU and an Agreement.

Manish RaghavOnline (Expert)
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

Srinivas.B.S.S.T (Expert)
18 June 2008

both are legally enforceable documents

25 July 2008

They are both used as written agreements between two parties. There is no established legal difference.

Adv.Shine Thomas (Expert)
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.

Amit K Dhar (Expert)
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.

Adv.Shine Thomas (Expert)
17 January 2011

MOU is like a contract,but it does not have to carry the same legal weight.

Advocate. Arunagiri (Expert)
17 January 2011

Normaly the MOU will be signed to decide the broadly the contents of the agreement which is going to be signed latter.

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