A Memorandum of Understanding (MoU) is a record where more than two parties recognize that they comply on a set of generalpath of direction. It will outline the rights and obligations of all parties. This MoU is laid out in early stage of discussion between the parties. It does not have any authority and responsibility in itself. It acts as just a requisite. It acts as a basis for a future formal contract. To be lawfully functional, an MoU should recognise the consenting groups, define the business objectives of the contract, outline the important conditions and get it autographed by the consenting parties.
The MoU provides a great confidence to all the parties by ensuring that they are on same page. And it secures the partnership.With the high-level terms of the collaboration already thought through, the parties can then begin to focus on the remaining details of the deal.
MOU are non-binding written agreements specifying the roles and responsibilities of the parties involved in the agreement. They are usually less time consuming and avoid the legal implications as involved in a contract.