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