A memorandum of understanding agreement template is like a memorandum of agreement which serves as a note or record made and signed by all the concerned parties for the present as well as the future use. Occasionally, it is also known as a letter of intent, which exceptionally used under the statement of law. Conventionally, this agreement or letter of intent uses to express a specified method, procedure or interest matter to perform a service, a system, a program or for all that taking part in a diverse activity that will provide benefits. No doubt, a memorandum of understanding has several functions nevertheless, it simply acts as a true contract which will be gestural between two or more parties those willing to start a new business or project either on higher scale or on smaller scale through collaboration with each other for the mutual benefits. Ostensibly, this agreement outlines the role of each and every party which is involved in this legal collaboration, especially how they will perform their functionality to receive some positive results during the life of an agreement.
Details of Memorandum of Understanding Agreement
Apart from fundamental objectives, a user can write this agreement, keeping in mind that it will serve as a fully prepared binding legal document which thoroughly used as a contract. So, in point of view of business dealing as well as professional concepts, a memorandum of understanding agreement is stronger and more formal than a traditional sort of gentleman’s agreement, which normally not exists in modern business. If we talk extending to the declaration of international public affairs and laws, a memorandum of understanding is a widely used agreement which provides countless advantages when compared with treaties. Moreover, the memorandum of understanding affects in the future planning and driving of things, while running a business or project.
Essential Modules of Memorandum of Understanding Agreement
A Memorandum of Understanding is a mandatory requirement for every kind of business. It is also constructed when a formal application to retrieve funds along with unconditional cooperation with other business partners. It serves with the full benefits only if, it is prepared by keeping all standard modules in line. Following are some essential modules which should be present in this memorandum of understanding agreement;
1- Name and details of all partners;
2- The reasons for which this memorandum of understanding;
3- What are the roles and responsibilities which all parties mutually accepted to ensure project success. Noteworthy, these roles and responsibilities must exist within the scope of this agreement;
4- There should be clear nomination of person/s who will be responsible to monitor and ensures all responsibilities are being performed by all concerned parties;
5- What benefits can be driven by partners while following this memorandum of understanding;
6- It must include the module which can elaborate how each partner will contribute with required resources to run the project successfully. These resources can either be financial or non-financial like; precious time, delivering product or services and rending training as well as expertise;
7- A confirmation statement by all partners to accept full authority for the performance, which is required to complete the project;
8- Lastly, but crucially, all parties must be signed on this memorandum of understanding. These signatures must be accompanied by their official stamp or on the behalf of a third party.