Making And Using Memoranda Of Understanding

memorandum of understanding

Traditionally a memorandum was a brief, semi-formal file used to send information inside an organisation. Memoranda were used to document contracts (understandings) between inner divisions, job units and people and therefore the memorandum that documenteded these “understandings” came to be a “Memorandum of Understanding” or MOU. At some point use expanded to additionally incorporate organisations and individuals outside the originating organisation. Today MOUs are frequently formatted as letters, memos as well as various other files.

Regardless of how they are formatted, mou must information the arrangement between people or organisations (and even countries) succinctly as well as in distinct terms. Each companion to the agreement needs to authorize showing agreement.

Why Are MOU Essential?

Here’s an instance of a scenario when MOU format might have saved the day. An infection control meeting had actually been arranged and it ran for 3 days. A conference organiser had been employed by a buddy of mine who was mainly in charge of organising the conference, but no written arrangement between the two existed. The second day right into the meeting there was a dispute between my good friend as well as the seminar organiser regarding whose obligation it was to collect repayment from conference attendees who wished to check out local vacationer destinations; my friend said the meeting organiser had actually vocally concurred to do it; the seminar organiser stated it was my good friend’s obligation which he had made no such arrangement.

Eventually, among the members of the organising committee accumulated and also banked the cash and also coordinated check outs to vacationer spots regarding town.


This was a celebration on which an MOU would have avoided a disagreement. By referring to the MOU, both celebrations would certainly have known exactly what was, or was not their duty.

How To Write A Memorandum Of Understanding

Usually a recap at the start of the MOU to establish the scene is required and then merely utilize two various other paragraphs titled something like “What We Will certainly Do” and also “What You Will certainly Do”. Such as this:

The firm will give:

# A meeting room with white board, overhead projector and seats for 20 people.

# Mixed sandwiches, tea, coffee and also fruit juice drinks for lunch for guests as well as instructors.

# A settlement of $12,345.00 including goods as well as services tax to you by digital transfer within 14 days of the program closure.

# Instructional products as much as 100 pages for each guest.

The company will certainly supply:


# submit our tax billing within 2 days obviously delivery.

# A work book labelled, “Effective Group Building” to each trainee and an extra duplicate for the firm library.

A real memorandum of understanding format for business would have had more products in both checklists, but this provides you the basic concept. Whatever each signature to the agreement will do is defined, generally in bulleted form.

Accessing the Terms

As soon as you have your memorandum of understanding in position, signed by both (or all) events, you can refer to it whenever necessary either to refresh your memory about your responsibilities or to assist settle a disagreement. If it remains in black and also white and also you consented to it, then it’s difficult to argue the contrary.

Undoubtedly whether there is a lot of money entailed, or a project is intricate, it’s better to have a lawful expert draft up an official contract. For those activities however, when an agreement is not necessary, an MOU can help in reducing the possibilities of disputes or misconceptions.