Memorandum of Understanding

Memorandum of Understanding

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Most-preferred legal service provider for Memorandum of Understanding in India. Get the legal support and guidance you need today!

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About Memorandum of Understanding

A memorandum of understanding (MOU or MoU) is a formal agreement between two or more parties describing the broad outlines of an agreement that two or more parties have reached through negotiations. They are used by companies and organizations to establish official partnerships. It is important to remember that an MOU is not legally binding. Even then, they carry a strong degree of seriousness and mutual respect.  Creating an MOU is usually the first step towards a legal contract.

In US law, it is synonymous with a letter of intent (LOI), which is a non-binding written agreement that implies a binding contract is to follow.

MOUs are most often used in international relations because, unlike treaties,  they take a short time to ratify and can be kept confidential. They also can be found in major contracts that are still in the planning stages. They may also be used to modify existing legal treaties.

The process often begins with each party effectively drafting its own best-case MOU. It considers its ideal or preferred outcome, what it believes it has to offer to the other parties, and what points may be non-negotiable on its side. This is each party's starting position for negotiations.

An MOU is a significant step because of the time and effort involved in negotiating and drafting an effective document. To produce an MOU, the participating parties need to reach a mutual understanding. During this process, each side learns what is most important to the others before moving forward.

Documents Required

  • Self Attested PAN Card copy
  • Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)
  • Self Attested copy of Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
  • Passport-sized photograph
  • Rent Agreement (Notarised: For rented property)
  • Sale Deed/Property Deed in English (in case of owned property)
  • No-objection Certificate from property owner
  • Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill
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