A Memorandum of Understanding (MoU) is a preliminary understanding between contracting parties which is executed before a formal agreement is entered into. The MoU highlights the intentions of the parties to a contract for entering into future contracts and doesn’t usually impose any legal obligations upon the parties.
A MoU may create legal obligations when a binding understanding is inferred from any of its clauses. A MoU may be used by companies and NGOs to establish partnerships. Hiring the top documentation lawyers in your locality will help you in creating a legally sound document at affordable prices.
- The parties to the MoU discuss with the lawyer the essentials of its contents
- The expectations and limitations of the parties are laid down including such provisions that are negotiable and that which is non-negotiable
- Draft MoU is drafted by the lawyer and deliberated by the parties
- Final draft of the MoU is prepared by the lawyer
- The final MoU is signed by the parties