Memorandum of Understanding
This Memorandum of Understanding is for use between two or more Parties that are interested in working together on a particular project. It is intended as a starting point for the Parties, as it enables them to set out the preliminary understanding between one another, and can help them to work towards a more formal agreement.
- An MOU allows for the establishment of a mutual intention. It enables each party’s goals and objectives to be clear.
- The finalization of an MOU allows for having a paper trail of the terms that have been in the negotiations leading towards finalization
- An MOU provides ease of exit, as any party that finds the objectives and goals not being met can easily end the agreement.
- Because the MOU already outlines objectives and terms, the document can serve as the foundation for a possible future contract.