Disadvantages of MOU
1. Not Enforceable: The main disadvantage of an MOU is that it is not a legally enforceable document. An MOU does not fulfil all the validity of a valid agreement. Hence, it is not accepted as a legally enforceable document. Any party cannot challenge the validity of the same in a court of law.
2. Confusing Clauses: There are scenarios in which the terms and conditions of the MOU can create confusion for any of the parties, so it is essential to read and understand all the terms and conditions mentioned in the MOU. The parties can clarify each other so they do not have to face any issues in the future.
3. Time Taken for Finalisation: The parties take more than usual time to finalise the terms of the MOU. As the negotiation between parties can take a very long time to finalise, it affects the finalisation of the MOU.
Contact Us