What Is The Memorandum Of Agreement

A Memorandum of Understanding (MOU or MOU) is an agreement between two or more parties described in an official document. It is not legally binding, but signals the willingness of the parties to move forward with a contract. As a general rule, you won`t go wrong if you`re too detailed. The trick is not to limit the activity to the point that no innovation or flexibility is possible. The contract should not be seen as a micromanagement opportunity, but at the same time be specific enough for all parties to do what they are supposed to do and for each party to have recourse in the event of a problem. In the area of health and community work, agreements are generally used to clarify and/or specify the terms of a cooperation or collaboration agreement with two or more organizations. For example, they must have to do with sharing space, collaborating on common goals, with any organization that contributes something to a joint effort, or with agreements to sit on the boards of the other. The guidelines for reading a memorandum of understanding are essentially the same. These are usually not written in legal language and can be quite simple, so reading and understanding can be much easier. Even if it is not a legal document, a memorandum of understanding is a promise and should be treated by the signatories in the same way as a contract: you should feel bound by it, and if you sign it, you must make every effort to execute its terms. Although memoranda of understanding are rarely seen in the multilateral sphere, transnational air transport agreements are in fact memoranda of understanding.

Two organizations may sign a Memorandum of Understanding to collaborate on a program. One of them, on the basis of their agreement, issues grants to set up the programme, and then the other – without whose participation the programme cannot be carried out – resigns. The first organization can then be asked to repay the grant money because it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the second organization could be legally obliged to reimburse the first organization. Or not.. .