Dear Colleagues,
I am wondering the difference between a 'Letter of Understanding' & Memoradum of Understanding' in the given below case.
a) I signed an MoU with a Developer (Sairung Developers) to buy a Plot (Agricultural) in a Project near Hindgewadi Pune and paid 15 Lakhs towards the same. The Developer is suppose to acquire the land and develop the same and seek necessary approvals from govt authority post which the Plot is to be issued to all buyers and possesion handover..
b) Initially all buyers had signed an MoU capturing the details of payment made. One clause in the same states that if the Developr is not able to give possesion in 18 months, the money will be returned with 8% Interest.
c) However, last week (After 3 years of initial payment) the Developer has sent a mail saying that the MoU is scheduled to expire and a new Letter of Understadning needs to be signed for whcih they have shared the format. (ATTACHED IS THE FORMAT).
d) The developer has signed and registered the sale deed for a few buyers, but others like me are still waiting.
My Questions Are:
1. Is there something called as "Letter of Understanding"? I know MoU exists but LoU?
2. If Yes, Difference between the same and Pros & Cons of an LoU?
3. Finally, Can a MoU expire to begin with? I beleive the Builder wants to sign an LoU which does not have the clause stating return of money with 8% Interest but i am not sure.
THanks,
Tayib.
