Memorandum of Understanding Sample

Wherever, there is any kind of a formal agreement or contract of understanding between two parties, a written document stating the terms clearly is made. This is a contract or in some cases such an agreement is made concrete through a Memorandum of Understanding (MOU). As mentioned, this is drawn up for establishing a clear understanding of how a deal is going to be implemented, practically. It also includes the clear distinction of functions and the degree of involvement of the parties involved. Primarily a MOU gives a chance to all of those involved in the agreement to see on paper as to what they all have agreed to. It also serves as a concrete reference in case there is a legal problem in a business partnership.

Template for Memorandum of Understanding
Primarily the format or a template of a MoU includes -

• The date of the MoU
• Description of situation of parties and their relationship with each other
• Communication details of the parties involved
• Compensation details, like who handles the money and how people are going to be paid and the like
• Terms of agreement
• Any other issues

These are the basic things included in a memorandum of understanding template. This seems fine to read, but still might not give you an idea of how this document looks like, right, so here is an mou sample.

Sample Memorandum of Understanding
Seeing how an actual Memorandum of Understanding looks will always be a better option than just reading about it.

MEMORANDUM OF UNDERSTANDING Between: XYZ and ABC The Parties to this Memorandum of Understanding (MoU) agree to the following Article 1 : Purpose and Scope Article 2 : Conditions and Arrangements Article 3: Timing Article 4 : Future cooperation The present MoU elucidates the general conditions and arrangements for future cooperation between the concerned parties. It is not legally binding on the parties. The exact terms and conditions of this future cooperation will be negotiated in due course and laid down in a contract, should circumstances permit. Signature:_______________Signature:_______________ For and on behalf of:___________________ For and on behalf of:___________________ Date:_______________________________ Date:

Now this Memorandum of Understanding is many times accompanied by a letter of intent and an agreement to keep the contract confidential. Here is how that looks.

MOU and Confidentiality Agreement
Sample memorandum of understanding cannot be complete without this confidentiality agreement, in case of a joint venture. A sample agreement for your perusal.

LETTER OF INTENT AND CONFIDENTIALITY AGREEMENT BETWEEN ABC And XYZ The parties are in the process of negotiating a Joint Venture agreement, whose purpose is ______________ Pending the possible signing of a Joint Venture agreement, all parties agree to hold in strict confidence all commercial and trade information exchanged and further, neither party shall act upon such information exchanged to the detriment of the other party, such obligation constituting a separate and distinct right not dependent on the enforceability of this letter of intent. The joint venture agreement shall be signed by___________, failing which all parties are free to pursue other alternatives as they deem proper without any responsibility to the other party. Signed in__________________ [Town, Country] on______________ [Date]. Name: Company: Signature

This was a very generic one sample, along with letter of intent. This in no way is the ultimate guideline to how to write or format an MOU.

To conclude, you can find a number of templates on the Internet and other sources. But the best bet is to take a look at a sample and approach a legal adviser. He will help you out. All the best!