Purpose of MOU
1. Documentation: The main purpose of the MOU is to document everything that the parties have agreed upon during the negotiation.
2. Reference: The parties can refer to this document at any stage and point to each other if any of the parties is not following what is mentioned in the MOU.
3. To Avoid Confusion: The verbal arrangement between parties create a lot of confusion, and it is one of the main reason for dispute between them. So, it is better to have written instructions in the form of an MOU.
4. Saves Time and Resources: By having a formal written MOU, the parties can save a lot of their time, energy, and resources.
5. Lesser Disputes: MOUs can be a safer option, and they fulfil the end goal of the parties that they are going to agree without any disputes.