A memorandum of understanding or MOU is a document that outlines and formalizes a mutually agreed upon agreement between two or more parties. MOUs are commonly used in business, government, and nonprofit organizations as an initial step towards negotiating a more formal agreement.
Before creating an MOU, it`s important to understand the basic elements that typically make up a good agreement. The agreement should include a clear description of the parties involved, the purpose of the agreement, the scope of the agreement, and the obligations and responsibilities of each party.
To help you get a better sense of what a good MOU looks like, we`ve put together a sample MOU agreement that you can use as a template:
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (MOU) is entered into by and between [Party A], a [Type of Organization] with its principal address at [Address], and [Party B], a [Type of Organization] with its principal address at [Address]. The parties agree as follows:
Purpose: The purpose of this MOU is to formalize a mutual understanding between [Party A] and [Party B] regarding [Purpose of Agreement].
Scope of Agreement: This MOU outlines the initial terms and conditions of the proposed agreement between [Party A] and [Party B]. It is not a binding contract, but rather a document that sets forth the intentions of the parties to enter into a more formal agreement in the future.
Obligations and Responsibilities: [Party A] agrees to provide [Services / Products / Resources] to [Party B] in accordance with the terms and conditions outlined in this MOU. [Party B] agrees to [Compensate / Provide Access / Provide Resources / etc.] to [Party A] in exchange for the [Services / Products / Resources] provided.
Term and Termination: This MOU shall be effective on [Date] and shall remain in effect until [Date] unless terminated by either party upon [Number of Days] days’ written notice.
Confidentiality: The parties agree to maintain the confidentiality of all information exchanged pursuant to this MOU.
Governing Law: This MOU shall be construed and enforced in accordance with the laws of the State of [State] without regard to its conflicts of law principles.
Entire Agreement: This MOU constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.
Signatures: This MOU may be executed in counterparts, and each counterpart shall constitute an original. Signatures transmitted by facsimile or other electronic means shall be deemed to be original signatures.
This sample MOU agreement provides a basic framework for creating your own agreement. However, it is important to note that every agreement is unique and requires careful attention to detail. To ensure that your MOU is clearly written, legally sound, and SEO-friendly, it may be helpful to consult with an experienced copy editor who is well-versed in drafting effective agreements.