MOU and Agreement

Dear Shivakant,

Agreement or MOU both are equally binding and there is no such differance between MOU and Agreement but always remeber whether MOU or Agreement should be complied the test of binding agreemnts as per Indian Contract Act 1872, there is no as such specification of MOU or Agreement, even oral agreement is also binding.

Basic requirement for any binding agreement (including MOU also) is under sec. 10 of Indian Contract Act are

1. Competancy of the Parties

2. Lawful Consideration and with lawful object .

3. FreeConsent

4. Not expressaly declre void by Indian Contract Act or any other Act

Regards

Adv. Vinayak Patil

A valid agreement  has base in Indian contract Act. MOU is only an understanding reduced into writing. If the MOU gets all necessary qualifications of  an agreement , it can be used as an agreement , in default can get redressed through a court of law.

Dear Haridasan,

Please through light on the above statement that MOU is mere understanding reduced into writting and let me know whether MOU is agreement or not under Indian Contract Act and whether it is enforciable or not enforciable.

Regards

Vinayak Patil

MEMORANDUM OF UNDERSTANDING IS ONLY A STATEMENT SIGNED BY BOTH PARTIES . IT IS NOT AN AGREEMENT. MEMORANDUM OF UNDERSTANDING IS NOT ON A STAMP PAPER. IN ORDER TO BECOME AN AGREEMENT IT IS NECESSARY TO HAVE ALL RELEVANT QUALITIES OF AGREEMENT STIPULATED IN INDIAN CONTRACT ACT. IN THE CASE OF MOU SUCH   ASPECTS  ARE MISSING.

Hi friends

can any one send a copy of duly executed MOY

Yudhveer

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.

A Memorandum of Agreement (MOA) and a Memorandum of Understanding (MOU) are interchangeable terms. Both documents are used as written agreements between two or more parties to:

1. Outline the purpose and details of a project.
2. Clearly establish each party's contribution, whether that be resources or effort.
3. State the benefit received by each party.

There's alot more details you can include, which I found out about at www.MOUTemplates.com and www.JVWisdom.com, but the bottom line is this document is used in a wide variety of settings and so you can make them as simple or formal as your situation calls for.

As noted on www.JVWisdom.com, an MOU can also be used as a Joint Venture Agreement or Partnership Agreement.  If you what to use an MOU for business (as a Joint Venture Agreement or Partnership Agreement), then you simply adjust the main headings you use to cover the details of the partnership and fill in the conditions in a conscise bullet form.  That site covers excellently the aspects you probably want to cover using an MOU in that way.

Now, while each of these documents outline a deal, project or partnership and establishes and agreement between people, none of them are strictly legally binding.  They are more used for clarification and as a commitment based in honor, like a gentleman's handshake.  However, of these documents the MOA is the most binding simply because it contains the word "agreement", since a contract is an agreement, an MOA signifies a more significant commitment than an MOU.

MOU is Pr-agreement or step to a binding agreement.MoU is a terminology using internationally and using where more process or steps needed for executing a binding agreement.

MoU is equally valid but depends on the written provisions in the MoU.

Hello Everyone,

Can you please give me some suggestion on below matter:

I m living in Nashik-Maharashtra. I have 3 acre agricultural land in Parbhani District. 

I have one Builder contact in Nashik area. He is interested to purchase this land and He his giving me New 1BHK  Ready Possession Flat in Nashik.

But He Said First We will do MEMORANDUM OF UNDERSTANDING (MOU). And After Land purchase He will do Flat Sale Deed.

He saying he will add all the necessary points in MOU.

Like...

1. He is giving me flat possession right now.

2. Purchasing agricultural land. Including all the Agricultural land area, land sell price. Flat Area, Flat sale price.

3. Placing his name on 7/12.

4. After Name Placing on 7/12 he will do Flat Sale Deed immediately.

So Can you please help on above matter. Is the MOU is sufficient Document or MOU is legally valid document in Law.

Or any other legal option for this deal.

Any answers would be appreciated

Thank you.

I also ageee with Sri Shihab , Corporate Advocate

if any one can advise me please ......MOU does required to use in STAMP Papers or Company Letter head ?

Dear sir 

mou is valid in indian court or not valid please guide & what is the significant of mou please guide