The Memorandum of Understanding (MOU) is often the first stage in the formation of a formal contract. It is a legal document outlining the terms and details of an agreement between parties, including each parties requirements and responsibilities. An MOU is far more formal then a handshake and is given weight in a court of law in case one party fails to meet the obligations of the memorandum.
Memorandum of Understanding (MOU) are generally recognized as binding, even if no legal claim could be based on the rights and obligations laid down in them. To be legally operative, a Memorandum of Understanding must:
(1) Identify the contracting parties,
(2) Spell out the subject matter of the agreement and its objectives,
(3) Summarize the essential terms of the agreement, and
(4) Must be signed by the contracting parties.
Any individual or any sovereign entity may require the Memorandum of Understanding as per their requirements.
The documents and information needed will vary based on the agreement selected by the client. Let FINMART understand your needs and assist you in documents requirement.