When looking forward to join forces with another company for better utilization of available resources and enhanced profits, a Memorandum of Understanding is signed. It is basically a semi formal document, short in length which is used for message transmission within an organization. When there was a need to ensure understanding or document agreements between work units, internal departments and individuals, memoranda were used. These understandings were documented in a memorandum which eventually came to be known as MoU or Memorandum of Understanding. Later, the use of MoU increased to a considerable extent and it started to encompass individuals and organizations outside the originating organization. Today, memos, letters or myriad documents are used for formatting MoU’s.
There is no hard and fast rule about the formatting of Memorandum of Understanding as could be seen in various examples available in Memorandum Library. The only focus that is laid is on the details agreement between organizations, countries or countries in unambiguous and succinct terms. Indicating agreement needs to be signed by each partner, who is party to this agreement. Signing an MoU helps in saving and protecting the interests of both the parties in case any dispute arises. Thus, whenever two parties come together and decided something between them, it is imperative to get an MoU signed.
When writing a Memorandum of Understanding, one may bank upon various samples and examples available in Memorandum Library. The MoU begins with a summary wherein a cursory information about the reason behind signing an MoU is mentioned. The next two paragraphs offer details about What one party is expected to do and what the other party is expected to do. The respective responsibilities of both the parties will be mentioned in detail so that the chances of any misunderstanding are negligible. Once an MoU has been signed, it can be referred to again whenever there is any confusion. It can be used to jog the memory again, in case there is any confusion about any obligation on the part of a company and chances of a dispute arising. Since in an MoU, everything is clearly and precisely mentioned, the chances of any argument to the contrary is next to negligible. It can also be used in the court of law as an evidence, though, it is a semi formal document. Many times, if the money involved is huge, a formal contract can be drawn up taking the help of a legal practitioner. The same step needs to be taken when embarking on a complicated project so as to keep chances of any dispute low.
Going through the options available in Memorandum Library makes it easier for the new parties to prepare a proper framework of a Memorandum of Understanding. In case, there is any misunderstanding or confusion regarding the same, help can be taken from the Memorandum Library. This way, the parties can protect their interest and embark on a fresh professional journey. There are many examples between different parties that helps new parties or clients to understand what is required in an MoU.