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RADHA PYARI SRIPADA (ADVOCATE)     15 July 2008

legal sanctity of MOU

what is the legal sanctity of MOU? what are the remedies for breach thereof? what are the implications of MOU on taxes? what kinds of taxes may be imposed on the basis of terms of the MOU assuming the MOU relates to a service contract / agency contract?



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 16 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     15 July 2008

MOU is simply document. It is bind only agreement between the parties. As per the legal agreement only tax matters falls.

RADHA PYARI SRIPADA (ADVOCATE)     15 July 2008

thank you very much for your instant response.


Radha Pyari.S.

RADHA PYARI SRIPADA (ADVOCATE)     15 July 2008

thank you very much for your instant response.


May I know where you are practicing?


Radha Pyari.S.

Ashutosh Choubey (Company Secretary)     15 July 2008

MOU has no legal enforceability. It is just a mutual consent / understanding over an issue that has been reached between the parties and reduced into writing on a piece of paper. An agreement / deed entered into between the parties on the basis of the MOU can only be enforceable and can be adduced as an evidence before a court of law. 

RADHA PYARI SRIPADA (ADVOCATE)     15 July 2008

Thank you very much for your immediate response. I am really happy that professionals of varied disciplines are instantly interacting on several issues.


Radha Pyari.S,


 

Manish Singh (Advocate)     15 July 2008

Generally MoU HAS no legal binding force since it is not a concluded contract but it s not so that mou alwz loses its binding force.


it depends upon case to case.


if there has been some consideration paid and the parties have acted forth in relation to the same, court may consider it as a binding one.


 

RADHA PYARI SRIPADA (ADVOCATE)     15 July 2008

thanks all of you for your quick response to my query.
Radha Pyari. > 

podicheti.srinivas (advocate/legal consultant)     15 July 2008

thaks for the information.

Vikram Chandra (Advocate)     15 July 2008

Memorandum of Understanding is nothing but  - A written proposal  or the statement (oral or written) of an exchange of promises between the parties to the Memorandum and the legality of the same will arise when anything which is agreed is acted contrary by either of the party thereto.  

Dinkar Vidyarthi (Advocate)     04 August 2008

according to the reply made by Manish singh Advocate, It is infact true that MOU is often asked by the Courts or the Presiding officer


 

Guest (n/a)     05 August 2008

and in case if any party to contract or business then it is no value but to consider in case of any dispute arises later

Sunny Honey (Student)     18 January 2009

MEMORANDUM OF ASSOCIATION forms the FUNDAMENTAL part of a companies operational, functional, executional as well as Directoral aspects during the course of its subsistence. I dont agree with the view point that MOA has not legal binding force. Its perfectally SHAM. MOA has equal binding force as it VIRES THE COMPANY VIA ITS INTERNAL, EXTERNAL REGULATORY ASPECT.  ANY CONTRACT OUT SIDE THE PURVIEW OF THIS INTERNAL/EXTERNAL  REGULATORY MEASURE 

Manish Singh (Advocate)     18 January 2009

Dear sameer,


 we are heirein not talking about MoU of a company but its infact Memorandum of understanding (MoU ) which is an agreement signed between the parties before getting into a final contarct & yes the MoU always possess legal value as an evidence in the eyes of law. Also we can get damages or specific performance to the extent of the binding nature of the said MoU.  

Manish Singh (Advocate)     20 January 2009


Dear sameer,




 


 we are heirein not talking about MoA (Memorandum of Association) of a company but its infact Memorandum of understanding (MoU ) which is an agreement signed between the parties before getting into a final contarct & yes the MoU always possess legal value as an evidence in the eyes of law. Also we can get damages or specific performance to the extent of the binding nature of the said MoU.  


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