Need legitimate proof without out legal commitment? Memorandum of understanding
What is a memorandum of understanding?
A Memorandum of understanding is a document describing a bilateral or multilateral agreement. This could be between one or more parties. It expresses a gathering of will between the parties. Also indicates an intended common line of action.
It most often used in cases where parties either do not imply a legal commitment. Also in situations where the parties cannot create a legal agreement.
A Memorandum of Understanding put in place to establish how the deal will function. And each party’s role and compensation is discussed.
A MOU must identify the contracting parties. It should spell out the subject matter of the agreement and its objectives. Also should summarize the essential terms of the agreement. And signed by the contracting parties.
International public law uses a memorandum of understanding. It has many practical advantages when compared with treaties. When dealing with sensitive or private issues, MOU is kept confidential.
Difference between MOU from an Agreement?
MOU is like a contract, but it does not have to carry the same legal weight.
If the words in the MOU are vague and unclear and do not create any binding effect, it is not enforced. It does not create a valid contract.
But if one party do anything on the reliance of MOU and sustains any loss he can recover losses. But cannot get enforce the MOU. Both Parties of MOU are bind by estoppel and any of them cannot take an adverse stand.
A memorandum of understanding is an agreement between two parties in the form of a legal document.
It is not binding in the way that a contract is. But it is stronger and more formal than a traditional gentleman’s agreement. Sometimes, an MOU has taken to use as a letter of intent, particularly in private law.
A letter of intent expresses an interest in performing a service or ta an activity. But does not bind either party.
The agreement contains a proposal. And its acceptance and intention of parties are to bind each other with the terms of the agreement. It is the intention of parties that if anyone violet the terms other will go to court and get it enforced.
Implementation of MoU in Transnational dealings
In international public law uses a memorandum of understanding. It has many practical advantages when compared with treaties. When dealing with sensitive or private issues, an MOU can be kept confidential. While a treaty cannot be confidential.
Another advantage of MoUs over formal instruments is that obligations under international law may be avoided. And they can put to effect in most countries without requiring parliamentary approval.
A memorandum of understanding can also be put into effect in a timelier manner than a treaty. This is because it doesn’t need ratification. Besides, a memorandum of understanding can be modified without lengthy negotiations. This is especially useful, except in multilateral situations. In fact, most transnational aviation agreements are a type of memorandum of understanding.