- A Memorandum of Understanding sets out all the points that the negotiating parties have agreed upon, their responsibilities, and expectations from the other party, and it also promotes that the parties work in the direction to achieve the desired result.
- The parties cannot use the MOU to create any legal obligation on the other party as it is only a collection of the agreed points during the negotiation between the parties.
- The parties usually prefer MOUs because it is flexible and very easy to create, and still they cater to the needs of both parties.
- MOUs records all the conclusion that the parties have formulated after the negotiation and have agreed upon.
- The terms and conditions that the parties have agreed upon and mentioned in the MOU must be signed by the concerned parties.
- The parties can make this document enforceable under the law if they follow the conditions mentioned under their contract law.
MOU | Full Form, Working, Content and Purpose