MOU and Contract
Gaurav Agarwal
(Querist) 10 November 2009
This query is : Resolved
What is the difference between MOU and Contract? Can both be enforced in a court of law? How amount of non-judicial stamp papers ia determined when two parties enter into contract?
Y V Vishweshwar Rao
(Expert) 11 November 2009
Memorandum of understading itself is not the Agreement , it is preliminary Step- by reachign one by one Terms of understanding and Final agreement/ contract is the next step . The propsoals under MOU may be dropped as per the understandign if both parties are not reaching to a final agreement .
Stamp Duty to be paid as per the local State Rules / Stamp articles !
Manish Singh
(Expert) 11 November 2009
generally contract attracts 50 rs or 100 rs as stamp duty depending upon the state's stamp act bt again when the agreement is specifically defined under the stamp act for differnt stamp duty, you wil be liable to pay that stamp duty.
as said earlier, mou is not a concluded contract and most of the times it can not be enforced under the court of law bt in case transaction has taken place under MoU against consideration it becomes a contract thus can successfully be enforced.
