* You will be able to define memorandum of understanding.
* You will be able to recognize when to use an MOU.
* You will be able to identify if an MOU is binding.
* You will be able to describe the different components of an MOU.
Learn what a memorandum of understanding is and when one should be used.
A memorandum of understanding (MOU) is an agreement between two (bilateral) or more (multilateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used either in cases where parties do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a gentlemens agreement. Interagency or intergovernment MOUs are probably more prevalent than nongovernmental MOUs. However, the concepts are the same. It is a major undertaking for a government to enter into a binding arrangement, thus they use nonbinding MOUs.
Compare MOU and the Following
ï Letter of Intent
ï Partnership Agreement
ï Memorandum of Agreement
ï Term Sheet
When to Use a MOU
ï Modify (Not Amend) an Existing Contract
ï Interagency (Government)
ï In Lieu of a Partnership Agreement
Is a MOU Binding?
ï The Law
ï Risks Associated With a MOU
Components of an MOU
ï Purpose of MOU
ï Term of MOU
ï Disclaimer of Binding Nature
Examples of Institutional MOUs
Henry H. Raattama, Jr. with Akerman LLP
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,CPE ,Additional credit may be available upon request.