![]() Key Differences Between Agreement and Memorandum of Understanding (MoU) ![]() ![]() A MoU lacks legal enforceability, however, if any one of the parties has done anything against the MoU and due to this the other party has suffered any loss, then the aggrieved party has the right to recover loss because the parties are bind by estoppel. A clear understanding should be there between the parties, regarding the intention which should be followed shortly. the objective should be definite to which they agree upon. The Memorandum of Understanding between the parties must clearly mention the terms of the agreement, i.e. The parties to the agreement have the right to go to the court in the event of non-performance of the agreement.ĭefinition of Memorandum of Understanding (MoU)Ī Memorandum of Understanding (MoU) is referred to as a written legal document which completely describes the principles of an arrangement between the two or more parties forming a bilateral or multilateral agreement duly signed by the parties. The agreement consists of a proposal which is to be accepted by the party to whom the proposal is made, and when this proposal is accepted, it becomes a promise of parties to each other, to which they have been agreed upon. It can be in oral or written or implied form and can be legal or illegal. ‘consensus ad idem’ to work together for achieving a common objective. The agreement is referred to as a state when two parties agreed upon the same thing, in the same manner, i.e. It is binding upon the parties, if the memorandum is signed in exchange for monetary consideration. It is always binding on the parties to the agreement. Offer, Acceptance, Intention and Consideration.Īn agreement can be enforceable in the court of law.Ī Memorandum of Understanding cannot be enforceable in the court of law. Content: Agreement Vs Memorandum of Understanding (MoU)Īn agreement is a document in which two parties agreed upon to work together for a common objective.Ī Memorandum of Understanding or MoU is a legal document which describes the terms of an arrangement between the two or more parties forming a bilateral or multilateral agreement. So have a look at the article to have an understanding on the difference between agreement and memorandum of understanding. ![]() These two are legal documents, which are often confused for one another, but the fact is they are different. An MoU contains the description of understanding between the two parties, including the requirements and responsibilities of the two. ![]()
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