MEMORANDUM OF UNDERTSANDING
Memorandum of understanding is a document that describes formal agreement between two parties .memorandum of understanding is signed by both the parties to the agreement, so it carries a degree of seriousness and mutual respect. MOU is often used in cases when the parties either do not want to imply a legal commitment or cannot create a legally enforceable agreement.
FEATURES OF MEMORANDUM OF UNDERSTANDING
1. UNDERSTANDING : Memorandum of understanding create a legal obligation and legal right so the memorandum of understanding is legally enforceable document if it fulfill the essential of contract.
2. TERMS AND CONDITIONS : In memorandum of association some terms and conditions are mutually agreed between the parties so it will help you in case of dispute. In some MOU the terms and conditions are mentioned regarding the future business plans so it will help you to plan as per the terms and conditions are already mentioned in the MOU.
3. SHORT PROCEDURE : To draft a MOU is very short and easy procedure it does not require permission of any of the authority as well as any other person except the parties to the MOU.