A memorandum of understanding template mostly referred to as MOU or MOU is a format of a formal agreement between two or more parties with stated terms and conditions. So, the companies and institutions use MOUS to establish a type of partnership for certain functions.
Although, a memorandum of the understanding template cannot be legally used to file a lawsuit against the violator. However, it shows the degree of seriousness of the party on a certain under-consideration matter. It’s a type of stronger gentlemen’s agreement that has a mutual respect factor. You may also like the logic model template.
Table of Contents
- 1 Printable Best Memorandum of Understanding (MOU) Template
- 2 Frequently Asked Questions (FAQ)
- 3 What is a memorandum of understanding?
- 4 What is a memorandum of agreement?
- 5 How do I write a memorandum of understanding?
- 6 How do I write a memorandum of understanding?
- 7 What are the features of the memorandum of understanding?
- 8 Contents of a Memorandum of Understanding Template
- 9 Free Memorandum of Understanding Samples & Examples
Printable Best Memorandum of Understanding (MOU) Template
Frequently Asked Questions (FAQ)
What is a memorandum of understanding?
A memorandum of understanding (MoU) is a formal document that acts as proof of an agreement between two or more parties. It’s not a legitimate binding. However, it shows the willingness of the parties to move forward with an agreement.
Memorandum of understanding is usually used in international relations. Companies or organizations used it to create official partnerships. It is commonly accepted the expectations of all the parties that are involved in a discussion. Moreover, sometimes it is also known as a ‘letter of intent’.
What is a memorandum of agreement?
A Memorandum of Agreement (MoA) is a document that explains the collaborative relationship between two parties wants to work together on a project. It acts as a legal document and explains the terms and thorough information of the partnership agreement. We can say that it is more formal than a verbal agreement. However, it is less formal than a contract.
Companies and organizations used it to develop and outline the cooperative agreement that contains service partnerships or agreements to give technical assistance and training.
How do I write a memorandum of understanding?
Memorandum of understanding has a unique writing process. Let us discuss how to write it;
Step#1:
The first step is the planning phase. It includes each party to identify their wants and what they are willing to discuss on.
Step#2:
The second step is the drafting phase. After the planning phase, parties draft the initial memorandum of understanding.
Step#3:
The third step is the negotiating phase. The Memorandum of understanding generally outlines guidelines that control the mediation process.
Step#4:
The fourth step is the timeline negotiation. When you have completed all the negotiations set the timeline for MoU. It includes the expiry date and rules regarding termination.
Step#5:
The last step is the restrictions. In the end, each party adds any restrictions or privacy statements that they want. Then, both parties sign the document.
How do I write a memorandum of understanding?
Memorandum of understanding has a unique writing process. Let us discuss how to write it;
Step#1:
The first step is the planning phase. It includes each party to identify their wants and what they are willing to discuss on.
Step#2:
The second step is the drafting phase. After the planning phase, parties draft the initial memorandum of understanding.
Step#3:
The third step is the negotiating phase. The Memorandum of understanding generally outlines guidelines that control the mediation process.
Step#4:
The fourth step is the timeline negotiation. When you have completed all the negotiations set the timeline for MoU. It includes the expiry date and rules regarding termination.
Step#5:
The last step is the restrictions. In the end, each party adds any restrictions or privacy statements that they want. Then, both parties sign the document.
What are the features of the memorandum of understanding?
Features of a memorandum of understanding are given below;
- The first step is to identify the parties. It indicates the name of the parties between whom the memorandum has been signed.
- The second feature is the purpose of the memorandum.
- The memorandum contains the duration of the agreement i.e. the beginning and ending date of the agreement. It also describes the conditions in which the memorandum will be terminated.
- The next feature is meeting and reporting. For example, parties decide that they must meet at least once in a quarter.
- The other feature is the financial consideration. It specifies the amount that both parties contribute.
- The management is another feature of this agreement. It includes the role, responsibilities, and remuneration.
- When you have all done with the agreement, signed and dated it by each party.
Mostly, the MoUs are the first steps toward the legal binding between the parties. It’s not a legal document but it plains the way of legal contract or agreement between two parties based on MoU success experience.
In many countries, a letter of intent is considered a memorandum of understanding. However, it has a bit different application as well. Further, it is considered synonymous with the MoU. The LOI is also a non-binding formal document that implicit a binding contact is to follow.
The MoUs are very common in international treaty negotiations. However, it can be used in firm business dealings such as business merger negotiations. You should also check the SWOT analysis template.
Contents of a Memorandum of Understanding Template
The memorandum of understanding Template is very useful to create an MoU for business or institution formal non-binding agreements. So, it clearly describes the points of consideration of the agreement.
Also, the names of the parties and the description of a project on which the parties have shared understanding are the main elements of a memorandum of understanding.
MoU template is an MS Word-based template that companies can use to just fill in the relevant information. Moreover, the scope, objective, deliberations of the project are also described in the MoU.
Additionally, it is important to clearly describe the role and responsibility of each party involved in the agreement of understanding. Although, it is not a legal document. However, the finalization of MoU takes a lot of time and effort. So, both parties expect the respect of MoU and the degree of seriousness towards committed roles and responsibilities. You may also like the payment agreement template.
Free Memorandum of Understanding Samples & Examples
Also, the procedure to create a memorandum of understanding is a bit complex and time-consuming. So, the key to success is to understand the learns what is most important for the other party before signing MoU.
Both parties their draft of best suiting MoU. So, it’s later discussed between the authorities to decide what points are non-negotiable and what points can be negotiated.
Moreover, the memorandum of understanding isn’t always beneficial for the parties. As it’s not any legal document and both parties always have the chance to violate the term of MoU for their benefit.
Thus, many companies don’t like to spend time and efforts on negotiating the creation of a memorandum of understanding. So, such companies prefer to work on and spend resources on the establishment of another agreement named as a trade agreement.
