Drafting Memorandum of Understanding

Untitled Document

Get a Free Consultation


Why Choose Dastawezz ?


A Memorandum of Understanding is a legal arrangement between two or more parties. As the nomenclature may suggests, a MOU is used to establish an official partnership between two or more parties. Such parties may be individuals or organisations. MOUs set the step and direct the parties towards further developing more enhanced MOUual and binding agreements. Memorandum of Understanding is also known as the letter of intent.


The process of drafting Memorandum of Understanding

  1. Identifying the parties: The MOU begins by identifying the parties who will be subject to the arrangement.
  2. Object of the MOU and obligations: the MOU should include the purpose for which it is drawn. it should clearly identify the obligations of all the parties and should be as nuanced as possible. As it aims at laying ground for long term association, it should also enumerate upon the future expectations and the possible associations that the two parties might form with one and another.
  3. Scope and responsibilities: It should specify the role that each party has to play in the arrangement. It should list down the operational activity and specialisation of each party.
  4. Consideration: as a contract is a reciprocal arrangement, the consideration that will be paid against the performance has to be clearly mentioned. Unless the MOU has a legally valid consideration, it will not be enforceable.
  5. Indemnity and other clauses: The parties may also include clauses of indemnity, which is undertaking the loss of another party, which arises while performing the subject matter of the MOU. They may also include other clauses like confidentiality, etc.
  6. Commencement and termination: The MOU must specify the tenure for which such MOU will be operational.

Process of memorandum Drafting


  1. A written MOU imposes binding obligations
  2. As an important aspect of all contracts is intent, an MOU helps establish and prove a common intention of both the parties.
  3. It saves time while entering into future arrangements
  4. It is an important instrument for securing future operations
  5. It helps enforce other contractual agreements that the parties may enter into
  6. It acts a framework for future dealings
  7. Reduces business risk and the risk of uncerainity
Advantages of memorandum



To get your Drafting Memorandum of Understanding Today!

Contact Dastawezz