Piscean123 (Owner) 12 July 2011

Need advise for Validity of MOU

If 2 or more parties come into a contract and sign an MOU, and and while the MOU is under execution phase one member of the MOU passes away due to which there is some delay in the meeting of the MOU however over a period of time 90% of the payment of the MOU is made with some breach in the date of payments , what is the validity of the MOU? Can any party challenge the MOU as being null and void because of delays of paymnts or can the other party just demand reasonable interst on the delays and non payments.

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5 Replies

Doveson (advocate) 13 July 2011

It depends on the wordings of MOU as to whether time is an essence of the understanding.

Gagan Gupta (Advocate) 19 July 2011

MOU are considered no enforceable documents. suppose it is contract than other party has deemed to waived its right to cansel the contract aftyer accepting the delayed payment. Though as said by my lerned friend Doveson wording/terms of MOU are important.

Ajay Kumar (Administration) 25 July 2011

There is difference between MOU and Contract. Whereas contracts are legally enforceable the same is not true for all MOUs. It depends upon the language and purpose of MOU to prove whether the MOU is legally enforceable and whether the intentions of the parties at the time of signing of MOU was to establish legal realationship.