regarding M.O.U.
sreenivasa.C
(Querist) 02 March 2009
This query is : Resolved
what are the basic rules for M.O.U.
PALNITKAR V.V.
(Expert) 02 March 2009
There are no separate rules as such. But the provisions of Contract Act are material.
AEJAZ AHMED
(Expert) 02 March 2009
Dear Srinivasa,
Following is the Complete description and details about the Memorandum of Understanding.
A Memorandum of Understanding or MOU is put in place to establish a clear understanding of how the deal will practically function and each party’s role and compensation.
In the Memorandum of Understanding, simply set out the details of the deal, what everyone agrees to do and how and when.
The MOU allows all involved to concretely see that they are agreeing to the same thing and to be a tangible reference to review should, heaven forbid, any troubles arise during the arrangement.
A memorandum of understanding is an agreement between two parties in the form of a legal document. It is not fully binding in the way that a contract is, but it is stronger and more formal than a traditional gentleman's agreement. Sometimes, a memorandum of understanding is used as a synonym for a letter of intent, particularly in private law. A letter of intent expresses an interest in performing a service or taking part in an activity, but does not legally obligate either party.
In international public law, a memorandum of understanding is used frequently. It has many practical advantages when compared with treaties. When dealing with sensitive or private issues, a memorandum of understanding can be kept confidential, while a treaty cannot.
A memorandum of understanding can also be put into effect in a timelier manner than a treaty, because it doesn't require ratification. In addition, a memorandum of understanding can be modified without lengthy negotiations. This is especially useful, except in multilateral situations. In fact, most transnational aviation agreements are a type of memorandum of understanding.
“How To write a Memorandum of Understanding?”
Since each deal is vastly different and he will not give any form of legal advice. As said above the MOU can be a simple statement e-mailed to the other party with a response saying they agree. In reality, you can make the Memorandum of Understanding as simple or complicated as is necessary for the Joint Venture and the comfort of those involved. Some want every detail and possibility ironed out ahead of time; others don’t. For those of you who want a more detailed Memorandum of Understanding, here is a list of aspects you could choose to include.
:: A Detailed List of Aspects to Include in a Memorandum of Understanding::
The date of the Memorandum of Understanding.
Describing the situation of the parties involved and how they relate to each other.
What services each party contributes to the deal before, during and after the Joint Venture.
:: Communication Details ::
The names and contact information of each party.
Any probationary or trial period.
Any set dates to review activity, performance, or satisfaction with deal.
What parts of this deal are open to change or negotiation and how.
What aspects of the deal should require formal notification and how.
How disputes will be settled.
:: Term of Agreement ::
When the deal starts (on a certain date, during a limited event, as soon as a sale occurs).
How long it lasts (for a certain period, indefinite until someone ends, at the end of an event).
How the deal is terminated (by one or both parties, under what circumstances, how is the end carried out.)
What happens at the end of or after the deal.
:: Miscellaneous ::
Any restrictions to either party
Any disclaimer statements
Any privacy statements (such as revealing the sales amount, but not information about the customers)
A place for all parties to sign the agreement.
PALNITKAR V.V.
(Expert) 02 March 2009
Mr. Aejaz sir,The information given by you is very valuable but do you mean to say the provisions of Contract Act are not basic rules and can be ignored in formulation of MOU?
Kamlesh soni
(Expert) 02 March 2009
A Memorandum of Understanding or MOU is put in place to establish a clear understanding of how the deal will practically function and each party’s role and compensation.
Mr. Aejaz sir,The information given by you is very valuable but do you mean to say the provisions of Contract Act are not basic rules and can be ignored in formulation of MOU?
AEJAZ AHMED
(Expert) 02 March 2009
Thanks for correction Mr. Planitkar & Soni
