An agreement between two parties is always suitable for potential problems and disputes. Try to avoid them by creating detailed documents with all the necessary data. Of course, you can`t predict all the results, but the more you do, the less problems will be in the future. You can explain what is at stake in the agreement. You can even set the initial dates if you`re working on a project. Keep in mind, however, that the agreement is not a substitute for a legal contract. Although formal, it is not legally binding. If you have any questions about contracts, talk to a lawyer. A declaration of intent or agreement is a kind of agreement. It is a non-binding agreement between two or more parties. A draft agreement provides an overview of the terms and conditions of the agreement.

Based on the example of Shell and Lego previously presented, MOA is essential to obtain new partnerships. The description of the business partnership with a supplier, competitor or recruit is made possible by the memorandum. In addition, an agreement between the parties begins to be reached after the agreement is reached. And if the document is legally binding, there are rules that would prevent conflict. The most important thing is that the main objective of MOA is to draft the agreement. This written form, signed by all parties, serves as evidence for litigation. The more information you include in your agreement, the better. If you can, insert relevant topics. These include the general scope of the agreement, the timetable, commitments and much more.

A famous quote from Henry Ford said: „The meeting is a start. Cohesion is progress. Collaboration is a success. Many of the parties they work with still cannot succeed with what has been said, unless all of them cooperate. But if you cooperate with a Memorandum of Understanding, every duty and responsibility of the parties will be clearly defined. Allow the MOA to guide each party on how the common goal can be achieved. Include the purpose of the memorandum. In most cases, the agreement is a preparation for a more detailed contract. Nevertheless, all agreed information, such as a brief description of the work to be done, should include the financial commitment of both parties, the duration of the agreement and important contacts for both parties. The content of the proposed agreement must be consistent with the agreement of the parties. They should sign it to formalize the document. You can create models that are: just like in different situations, the MOU models are also different.

But they have common elements that you need to include in their manufacture. When you create a template, you include: Observe a sense of balance. No, that does not mean that if one party has ten tasks, the other should have the same number of responsibilities. Balanced by the letter, „both parties agree.“ In other words, the agreement should not be unilateral. Mutual understanding is essential for each party to sign the form anyway. More than that, balance in achieving expectations. The conditions may no longer be realistic and difficult to meet, especially if they are contrary to the jurisdiction. Make sure you include a section on possible disputes and their resolution. Also write about the possible termination of the contract and the circumstances in which it may occur. It would also include the requirements and responsibilities of each party. Establishing a Memorandum of Understanding is usually the first step. Do it first before forming a formal contract.

Never skip the evaluation process.