Essay On Importance Of MOU

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Importance of an MOU

Memorandum of understanding holds major implications for both international and domestic law. An MOU is often confused with other, similar jargon, such as letter of intent or memorandum of agreement. MOUs are very usual and are used for domestic purposes and agreements between nations. Some are general and concise while others may be long-winded and extremely detailed. No matter their length or complexity, MOUs specify mutually-accepted expectations between two or more people or organizations as they head together towards a common goal. MOUs are not legally binding because neither party wants to deal with the ramifications of a binding agreement, and also because they don’t involve the exchange of money.

Difference between MOU and contracts
A contract is a written and
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Initially each party starts in a planning stage to determine the requirements-what they want or need the other party to provide, what they have to offer, what they are willing to negotiate, and the rationale. Perhaps most important, the MOU spells out the common objectives of the parties involved. After the initial draft is formulated, representatives for the parties meet in person to negotiate and haggle over the finer points of the MOU. MOUs often spell out communication details, such as descriptions of both parties' capabilities and how are these related to each other's' interests. It may also document contact information for each party's representatives, set dates for performance reviews and leading to creating processes for dispute resolution. Other specific terms of the agreement which are usually included are when does the agreement begin, how long will it last and how one or both entities can terminate the MOU (also terms of breach). An MOU also has disclaimers and restrictions, as well as privacy statements. Once parties come to an agreement, they sign the
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