It should clearly specify the purpose and the goals for which the memorandum is being signed.ģ. It should specify the name & other details of the parties between whom memorandum of understanding is being signed.Ģ.
Features of MOU:Ī Memorandum of Understanding should have the following features:ġ. It does not constitute a legally enforceable obligation but, this non-legally binding MOU may be useful to serve as an agreement between two or more departments within a single public entity. MOU’s can be kept confidential by the parties, if desired. It is used to gauge the intention of the transacting parties before a deal is officially signed between them and doesn't grant either of them any rights. It is made when two or more parties outlining the rights and obligations of the parties to the agreement are into initial discussions.
A Memorandum of Understanding or MOU Agreement is entered into when parties have agreed to enter into a contract, but the formalities (such as terms and conditions) of the contract are yet to be negotiated. Memorandum of understanding (MoU), also known as Letter of Intent in India, is just a means for two parties to reach a decision.
What is MOU? What is Memorandum of Understanding?