Memorandum Of Understanding

What is an MoU Agreement?

A memorandum of understanding is an official agreement among two or more parties, established in accordance with the intentions of each one of them. It exists in scenarios where one either begins with a new partnership or executes a projectin common.

An MoU may exist between two or more individual parties or nations for that matter. The memorandum of understanding agreement comprises the pre-decided and  mutually understood terms that cannot be disclosed or violated by any one of them.

Memorandum of understanding agreement in India

Despite being a prominent term used in international relations, the memorandum of understanding agreement in India is quite rigorously used in businesses.

An MoU agreement usually acts as the stepping stone when someone begins with a new business in partnership that includes common objectives relating to another party. This acts as a formal agreement between the two parties mentioning the terms and responsibilities that are mutually pre-decided upon.

Important things related to an MoU agreement

This legal agreement not only ensures you about the future partnership procedures but offers a hasslefree binding contract that clearly mentions and defines individual duties. A few of the important details relating to anMoU are as mentioned below:

• An MoU is drafted when two or more parties decide upon working together. In case of government, it related to the interagency work as well.
• There must be a minimum of two parties involved to establish an MoU.
• The agreement papers precisely mention the date and time of its beginning and end.
• The MoU must precisely mention the party responsible for the loss in case of a conflict or injury caused among the partners or people in the agreement.
• A legal MoU clause discussing the termination of the agreement in case any of the parties involved calls for termination in court, must be written down.
• The content of an MoU agreement differs in public and international affairs. Hence one must ensure that the agreement designed works according to the intended expectations.

How and where to find best legal advice online?

The list of important aspects in an MoU vary according to the intent of the parties involved. However, one must consider online advocate consultation for professional assistance and advice. Such procedures can be best carried out by the expertise and experience of a professional online lawyer. However, if you are unsure about where to find the best online legal consultation, you might have just landed at the right place.

We have got a number of lawyers specialising in various fields and you may select one online, for yourself. You as the client have entire control about who would best suit your requirements according to the qualifications and other details of the lawyer, mentioned on the site.

How does a Memorandum of Understanding differ from a Contract?

The memorandum of understanding agreement in India can only be imposed in a legal courtroom on fulfilling the provisions according to the Indian Contract Act, 1872. Precisely, a part of the Indian Contract Act states that only the agreements that are legally binding, can be termed as contracts.

But who or what decides whether an agreement is legally binding or not?

There are several aspects to consider that consequently transform an agreement into a contract and a few of them are as listed below.

• The existence of an offer and acceptance is a must in the contract.
• Individual parties must be free and willing to enter the contract. Anyone agreeing due to an external force, fraud or influence cannot be considered for a contract.
• The individual parties involved in this agreement must be 18 years and above in age. Further, none of them must be bankrupt.
• The parties entering the contract must be fair-minded.
• Lawful consideration must be an important aspect.
• The intent should precisely be of creating legal relations.

What happens when an MoU agreement extends as a contract?

When a MoU transforms into a legally binding contract the two or more parties involved must go according to the clauses and terms mentioned in the same. In case of any dispute or disagreement, the court or law shall intervene to resolve according to the already established agreement. The party at fault may suffer legal consequences according to the court and legal judgments.

What does a Memorandum of Understanding Agreement in India include?

You might have seen several official and legal documents, but each one of them differs according to the content. Similarly, an MoU is one of those agreements which does not declare the final conclusion but an agreement wherein clauses and terms are agreed upon or mentioned in detail.

It is widely used to establish mutual agreement upon various duties, according to the intent of the parties involved. The legal MoU generally constitutes of the following:

• The intent of the partnership must be precisely mentioned.
• The objectives of the parties involved in detail.
• Duties and responsibilities of individual parties.
• The time duration for which the MoU holds power.
• A statement relating and mentioning the confidentiality clause.
• The pre-decided procedure of handling and resolving disagreements over disputes, in case any.