myz-vgb.ru A Business Encyclopedia

Memorandum of Understanding (MoU)

Definition: The Memorandum of Understanding or MoU is the performance agreement between two or more parties wherein they agree on the common lines of action.

Generally, the parties opt for a memorandum of understanding when they don’t want the agreement to be legally enforceable and just want a written proof of their oral commitments to each other. However, whether the contract so formed between the parties implies a legal commitment or not depends on the legal elements written in the memorandum of understanding. Such as, offer and acceptance, consideration and intention to be legally bound, makes MOU a legally enforceable document.

Typically, the Memorandum of Understanding is comprised of following details:

  1. The parties to the agreement.
  2. The project for which the parties are forming an association.
  3. The time period, i.e. a start and end date when the agreement is functional.
  4. The duties and responsibilities of each partner are defined clearly.
  5. Proper disclaimers should be included, such as employees of party-1 should not be considered as the employees of party -2.
  6. The financial contribution of each party is clearly mentioned.
  7. The other important element to be included in the memorandum of understanding is the risk sharing, i.e. to what extent each party bears the risk due to any mishap.
  8. Finally, the signature and the date of signature of both the parties is required to confirm the terms and conditions mentioned in the memorandum of understanding.

Thus, MOU is the written agreement conforming the intentions, obligations, and mutual responsibilities of the two parties.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


define bypassing in communicationmeaning of asset turnovercheque transaction systemmanagement principles of henri fayoladams theory of inequitysignificance of elasticity of demandwhat is scrap value in depreciationstraddle meanswhat is the diminishing marginal utilitydisinvestment definitionherzberg management theorywhat is oligopolisticwhat is captive pricingwhat is job rotation in human resource managementthe johari windownps pensionpromotion mix strategy definitionmeaning ipowhat does lpp meanexample of unitary elastic demandsimplex definitionpath goal leadership styleschallenger marketingcarrot meaningmarginal rate of commodity substitutiontiming of neftdefinition for fourteen pointsmotives of inventory managementdemographic segmentation marketingmeaning of internal rate of returnautocratic leaderfayol scientific managementwhat is demand pull inflation caused bybases of market segmentationturnover ratio calculatorwhat is the meaning of hedge fundsfactors affecting consumer perceptionmeaning of geocentricunstructured interview definitionbenevolent authoritative leadership styletheory of collective bargainingtreasury bills definitionmeaning of profitability indexdefinition of modineft minimum limitlinear programming dualityparachute meaningmajor ethical systemsdefinition pure competitionmeaning of coefficient in mathmeaning of tqmdefinition of referent powerdefine individual demandspearmans rank equationannuity method of depreciationrevenue deficit and fiscal deficitelasticity of substitution formulamax limit of neftforeign exchange speculationnpv definedconcept of shrmcorporate downsizing definitiondefinition pure competitionprograming definitionbureaucratic management max weberclassical conditioning pavlovprinciples of mgmtblake and mouton managerial grid pptansoff matrix disadvantagesmaslows need hierarchy