mou

Querist : Anonymous (Querist) 15 December 2009 This query is : Resolved
what is mou? can it be used in real estate transactions? whether it is enforceable and precautions while making mou.

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S.KARUNAMOORTHY (Expert) 15 December 2009
IT means Memorandum of Understanding.. before entering into agreement , parties can enter in to MOU for sake of agreement. in other words it is consent for agreement. In real estate business, people are used to enter into. It is valid.

R.R. KRISHNAA (Expert) 15 December 2009
It is not enforceable. It is not legally binding.

As a MOU normally provides that the parties agree to further negotiate and settle the terms of the contract, there may not be concluded contract, as such, an agreement to agree is not concluded contract and therefore not enforceable.

Ref: AIR 1998 Cal 44