These simple Memorandum of Understanding Templates (MOU) can assist you in a better way to create a perfect Memorandum of Understanding.
Generally speaking, a memorandum of understanding is a contract or agreement signed between two or more parties. Usually, when a gentleman’s agreement is not enough and a formal contract is more than enough, corporations and individuals use MOUs. Keep in mind that this memorandum still has legal obligations and binding power if specified within the terms and conditions. Otherwise, it’s just a document stating that an official agreement will be signed in the near future.
Importance of Memorandum of Understanding:
A memorandum of understanding is a commonly used official document that is used in place for an official agreement or legally binding contract. The basic purpose of creating an MOU is to mention that an official and legal agreement will be signed by the involved stakeholders in the near future and it will include more or less of the terms and conditions mentioned in the MOU.
As said above, an MOU is not a legally binding document which means even if it’s signed, you can’t force any obligations to either of the involved party. But, if all the parties agree and they state the fact that once the document is signed, it has legal value and lawful obligation for fulfilling the duties, the involved parties are tied by the government to deliver expected duties and responsibilities.
Free Memorandum of Understanding Templates (MOU)
Here is an available professional Memorandum of Understanding Templates (MOU) that are created in MS Word and PDF Format.
Key Elements of Memorandum of Understanding:
- Date on which the memorandum is signed
- Date on which the memorandum will take effect
- Details of the involved parties i.e. organizations or stakeholders
- Name of authorized persons who can sign the memorandum
- Scope of the memorandum and general reason for preparing it
- Principles and values of the memorandum
- Objectives to achieve with this agreement
- Expected end results
- General responsibilities of involved parties
- Terms and conditions of the agreement
- Signature of involved stakeholders
Some more beneficial Memorandum of Understanding Templates that can be customized easily as your desire.
Memorandum of Understanding Template for Services
Introduced here comprehensive Memorandum of Understanding Templates (MOU) for Services in MS Word, MS Excel, and PDF format which can be easily customized.
Memorandum of Understanding
Check out these new memoranda of Understanding Templates (MOU) and make a Memorandum of Understanding quickly and easily.
Guidelines to Create Memorandum of Understanding:
Understand the Basics of MOU:
Before you jump right into preparing a memorandum of understanding, it’s important that you understand what this document stands for, what its purposes are, what legal binding value it has, and if it can serve as an agreement or not. Keep in mind that an MOU is not a legal agreement which means even if the second party signed it, you can’t force them to deliver unless it states so in the memorandum.
Confirm if You Need an MOU:
Once you understand what memorandum of understanding stands for and what purposes it serves, the next step is to decide if you actually want an MOU or an official contract. Commonly, when an MOU is signed, it indicates that there is a plan in motion but another official contract will be signed later in near future. It means that this document will serve the purpose of clearing the understanding between involved parties in a formal but not legally binding manner. If you want the other party to own their responsibilities and have a legal obligation to their role, maybe it’s better to use an actual contract.
Decide if any Portion should be Binding:
In general, a memorandum of understanding can’t be used a legally binding agreement in the court of law but there are some situations where this document can achieve the value of a legal contract. For instance, if you specifically state that this document is in fact prepared to clear the understanding of involved parties only, it’s not legally binding.
- Or, if the document states that a legal contract will be signed later to make the deal official, the MOU is not legally binding. It’s up to each individual if they want to make the MOU legally binding or keep it as the first draft of an official agreement.
Include the Terms and Conditions:
This part here is the most important portion of a memorandum of understanding because this explains the rights and obligations and responsibilities of each involved stakeholder. The terms and conditions should be written very carefully as a small mistake or misunderstanding can lead to a big confusion and even result into a legal dispute.
- This portion should include; introduction of involved parties, date on which it will take effect, the basic reason for preparing this document, the legal terms and conditions, the expected end results and the responsibilities of key people involved in the execution.
Get it Signed by Involved Stakeholders:
At the end, there should be enough space left on the document for all involved parties to sign it and make it official. If this document is being used by two individuals, they both need to sign it or if it’s between two organizations, authorized persons from each company should sign it. Similarly, if there are more than two parties involved, they all need to sign the document.