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?
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.
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.