The document which is known as a memorandum of understanding is an important legal document that is signed between the two parties which are entering into a common interest thus getting mutually agreed upon the common upcoming interests. This document shows that both parties are happy to join in the common line of action for their future perspectives. This is generally taken as an informal form of an agreement in such cases where the parties do not enter into proper bilateral agreements. However, the document legally owes the same importance and legal value as that of a formal agreement.
The presence of all the well-defined legal elements as that of a contract makes this document as well an important legal document and the document is separately designed depending upon the type of common interests whether it is the goods that are to be a point of interest, the common services or some sort of the business loans or investments. The type of the subject in each case may vary however the legal aspects of the document will remain more or less the same to make it a valid legal document in every case.
Here is a preview of this MOU Memo Template created using Microsoft Word,
To understand the exact position and importance of this memorandum of understanding we should consider it in different law contents. In the case of private law, this memorandum of understanding is regarded as a letter of intent which means a document labeling the intentions of one party for their common interest towards the other. In case of the company law or business law, the memorandum of understanding is regarded as a relationship between two departments, organizations, companies, or agencies. A common example that is seen is the signing of the service agreements between the two companies etc.
In case of the public law, the memorandum of understanding is signed between the two countries, and states in the form of different treaties that are signed between the two countries for sharing common resources. The memorandum of understanding of such types may sometimes be kept constant from the secrecy point of view however, it is not all the time obligatory. The secrecy of a memorandum of understanding depends upon the subject content of the memorandum.
The common points that should be included while writing a legal memorandum of understanding are;
- Information about the parties among which the memorandum is being signed
- The date of the signing of a memorandum
- The offer details
- The subject content about which the memorandum is about
- The acceptance note from the other party
The main advantages of the memorandum of understanding are;
The decisions concerning the memorandum of understanding come under local laws or national concerns. None of the international law can challenge the memorandum of understanding as that of the formal contract. The modifications in the memorandum of understanding can be made in a much easier way rather than the formal contract which needs a lengthy procedure to be followed for the formal contracts.
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