Contents and Format of MOU
When the parties have reached a stage where they know what to expect from each other and want to execute the MOU by signing the same, they must create a common MOU that has all the intentions of both parties. There are some points that all the MOUs must have discussed below.
1. Details of the parties: The MOU must contain the details of the negotiating parties, it can be two or more than two, depending upon the situation. The parties in the MOU can be anyone who is negotiating the terms and participating in all the discussions, such as Countries, International or national organisations, Companies, and persons.
2. Period of the MOU: The parties must mention a common period till then, the MOU should stand valid. As it is very likely that the parties are not going to perform the activities mentioned in the MOU, it is important to mention the date from which the MOU stands cancelled.
3. The Intent of the MOU: It is very important to mention what the negotiating parties are going to achieve through the MOU. The intent of the parties should always be clear so that it does not create any ambiguity between the parties.
4. Responsibilities of the parties involved: This is one of the most essential elements of the MOU. The responsibilities of each party must be mentioned in the MOU to avoid any future confusion. The roles of the parties in also mentioned in this section, and it also defines how much resource each party will dedicate to achieve their common goal.
5. Disclaimers: In this, all the things need to be mentioned that both the parties have agreed to not perform during the duration of this MOU. It needs to be in clear language so it does not create any confusion.
6. Financials: If any financials are involved in the work-related that is discussed in the MOU, then it needs to be mentioned under this segment. The parties need to mention the exact payment methods and who is going to pay under this section.
7. Risks Sharing: Under this section, all the risks that are going to arise during this MOU need to be mentioned, and which party is going to cater to which need. It is also important to mention if the parties are going to jointly cater to any need.
8. Signatures: The signing authority of each party must sign the Memorandum of Understanding to make them enforceable.
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