The initial understanding among contracting parties which is turned into a formal agreement is known as A Memorandum of Understanding (MOU). An MOU mentions all the requirements of contracting parties so that they can enter into future contracts. This doesn’t usually impose any legal obligations on the concerned parties.
However, an MOU may lead to legal obligations as deduced from its clauses. MOU is used by companies and NGOs to establish partnerships. An experienced leading documentation lawyer can provide you with an accurate legal document at reasonable costs.
Covers Entire Relationship: Complete relationship between the parties is covered under MOU , encompassing all features of the contract that might arise.Before starting a long-term relationship it's crucial to have such agreement.
Saves Time: It enables quick negotiation of agreements saving a lot of time.