Here are 7 Reasons Why an MOU is Ideal for Business Agreements

What? Some may ask. You plan to sign a Memorandum of understanding for a business deal? This is crazy! Why, an MOU is not a legally-binding document. You could be walking into a trap! To such people, a business deal must ooze an aura of business. Yes, it must be businesslike, in every sense. At face value, an MOU does not seem to have such credentials. Or so it goes. Do we have good reasons to believe that an MOU is a credible document that can work well for a business deal? Yes, we do. Here are 7 reasons why … Read more

How the Signing of MOU Saves Costs

What is the cost of making a deal? Intriguing, isn’t it? According to Trivia Genius, one of the most expensive deals in the history of humanity was the 2015 agreement for the mega-merger of Dow Chemical and DuPont companies. The deal cost a whopping $130 billion. Does it have to cost the earth merely to conclude a mutually acceptable agreement? No. Indeed, with regards to signing a deal in the mold of a memorandum of understanding, no one needs to break the bank. Let us now consider just how the signing of MOUs practically saves costs. Unlike Contracts, MOUs Involve … Read more

Revealed: Why MOUs are Here to Stay

As long as the sun rises from the East and sets in the West, men will continue cutting deals, striking agreements and signing contracts. Yes, this is a universally accepted fact of life. One such lasting deal involves the signing of Memorandums of Understanding. Why can we be sure that MOUs are here to stay and that they constitute a crucial segment of man’s life? Let’s dive right in and find out. MOUs Help Organizations Circumvent Legal Conundrums Often, when making agreements, many organizations would rather avoid the complexities and intrigues associated with various legal and ultra-formal documents that are … Read more

Why a Memorandum of Understanding is Critical to Your Project’s Success

Transcript: In the beginning of a partnership when everyone is excited about the potential outcome of a project, people will say or do whatever it takes to get things off the ground because they’re all very eager and willing to work together. However as the romance of the new venture wears off and the real work kicks in, people with even the best intentions may find that things were never very clear about how the project was supposed to work or they have different recollections as to the details of the agreement like who is supplying or bearing the cost … Read more

Who Should Use a Memorandum of Understanding

Transcript: A Memorandum of Understanding or MOU is the document used to articulate the mutually beneficial agreement between two or more parties outlining the commitment between the parties to work together collaboratively toward the same purpose or goal and share resources or services. The Memorandum of Understanding allows all involved to concretely see that they are agreeing to the same thing and to act as a tangible reference to review should any troubles arise during the arrangement. One reason why the Memorandum of Understanding is a wonderful business tool is its flexibility. You can use it in a variety of … Read more

Memorandum of Understanding Definition

Transcript: A Memorandum of Understanding is a document which outlines the details of an agreement between two or more parties who intend to work together toward a common goal the document is often abbreviated and referred to as an MOU. An MOU is usually less complex and detailed than a contract, however it still provides a framework for everyone involved to use in undertaking a project or working agreement. A Memorandum of Understanding is excellent to use when you’ve made a verbal agreement and you want to confirm and solidify the terms you’ve agreed upon without creating a formal contract … Read more

Is a Memorandum of Understanding Legally Binding?

Transcript: A Memorandum of Understanding is a document that outlines the details of a commitment between two or more parties collaboratively working together toward a common goal or purpose and sharing resources or services in the process. This kind of informal contract works well in a variety of business settings for business people, entrepreneurs and organizations where the parties do wish to form an agreement without assuming legally binding obligations. Major benefits of an MOU include, their flexibility and scalability allows people to tailor them to their personal circumstances and that one may solidify an intent to work together without … Read more

How to Write a Quick Memorandum of Understanding

Transcript: A memorandum of understanding is a document which outlines the details of an agreement between two or more parties who intend to work together toward a common goal, sharing resources and services in the process. With a memorandum of understanding you solidify an intent to work together without necessarily forming a legally binding agreement. Since the MOU is an informal contract you can use it very flexibly and scale the MOU to suit your personal circumstances, you can make it as simple or complex as formal or casual sounding as you need to get the job done. So the … Read more

How to Ensure Your MOU is Legally Enforceable

A recent report by the United States Justice Department indicates that an impressive 97% of civil cases in the country are literally being won and lost away from the court corridors. In fact, the report shows that in 1992 more than 22,451 civil cases went to US courts. A decade later, in 2002, only 11,908 cases reached the same courts. Drawing from these statistics, it is clear that using the right strategy, you can win a court case long before the trial happens. This can be either by avoiding litigation outright, or confronting the adversary with a compelling, watertight case. … Read more

Circumstances When It is Advisable to use an MOU

Experts cite marital conflict as one of the burning issues of the 21st century. Ironically, millions of people still pursue marriage with unwavering relentlessness. They are strongly convinced that marriage holds the key to personal bliss. Regardless, in light of the perils associated with it, why do people increasingly pursue the uncertain and potentially irreversible marriage contract? Why, a golden opportunity always exists for a dalliance with the traditional, less binding, non-committal, and water-testing, pre-marital engagement. Moreover, this type of watered-down agreement can last as long as the parties wish. This analogy does well to illustrate the perils of entering … Read more

Breach of MOU? Here are Legal Actions You Can Take

You have recently signed an agreement in the form of a memorandum of understanding with your business partner. The signing of the deal was characterized by much pomp and ceremony. At last, the deal is signed. You do not doubt in your mind that the fruits of the agreement will soon trickle down to your table. You have good reasons to be optimistic since, throughout the process, your partner demonstrated great enthusiasm, goodwill, and an unqualified commitment to pursue the deal to its logical course. Then, alas! The unexpected happens. Just a few months down the line, you discover that … Read more

Why You Should Opt for an MOU (And Not a Contract)

Have you noticed that we all ‘sign’ various forms of contracts daily? Yes, whether we know it or not. A routine click on the ordinary ‘I agree’ button, found in most privacy forms, is one of those regular contracts that people make every day. On the other hand, thousands of people sign more formal contracts daily. Sadly, in some cases, the results are disastrous. How can we take advantage of the benefits offered by perfectly crafted memorandums of understanding to sidestep the perils of a legal contract and get a much better deal? Here are a few facts on the … Read more

The Checklist: 8 Features Every MOU Must Have

The High Court in Singapore recently made an earth-shaking decision; it ruled that a memorandum of understanding can be a fully enforceable, legally-binding document, just like a formal contract. In the historic case involving Rifaat El Gohary vs. Bassatne Mohamed, the judges made a ruling on the poignant question: Is an MOU legally binding? The verdict was unanimous. Yes! The MOU in question, they ruled, was fully legal and entirely binding to all the parties. What was the primary basis for this shocking decision by the Singapore court? Simple. The facts in the MOU demonstrated that the language used, the … Read more

How to Craft a Watertight MOU that Stands the Test of Time

Tragedy struck on April 15, 1912.  The world was shocked. Titanic, the famous luxury steamship, which was widely touted as ‘unsinkable,’ actually sank in the North Atlantic coast, killing more than 15,000 people on board. Experts claim that, from the start, Titanic was doomed. Why? The gigantic ship’s design, which was popularly praised as an awesome state-of-the-art marvel, spelled doom for the vessel. It had 15 watertight bulkhead compartments, complete with a double bottom. Each chamber had watertight electric doors, controlled by a switch. But there was a problem. The Titanic’s seemingly impregnable watertight design had a hidden flaw, allowing … Read more

What is a Memorandum Of Understanding?

President Donald Trump shocked a reporter with the bold declaration that he did not like memorandums of understanding “because MOUs don’t mean anything.” Quite intriguing… The President had been asked to say how long he thought the China-US memorandums of understanding would last. Was he right? Not really. While he may have alluded to the fact that MOUs are not legally binding, they can have grave ramifications for the parties involved, depending on varying circumstances. You might wonder how this relates to your personal or family life, but wait a moment. Before you trash the subject of MOU as merely … Read more