Even if a Memorandum of Understanding is legally unenforceable, both sides promise to cooperate in one way or another. It should be taken as seriously as a treaty, regardless of its legal status. For this reason, as in the case of a contract, you must be sure to understand and accept all its terms before signing it. A Memorandum of Understanding can buy you the time you need to get the details you need for a contract, but it does not replace a legal contract. If you have questions about the legal parameters of your agreement, you should contact a lawyer. Even if the amount is small, it is important to have a treaty rather than a memorandum of understanding or no document at all. It is reasonable to assume that more professional partnerships, collaborations and other organizational and individual relationships are ruined by money issues than by the next ten cases. The reason is often that the parties have different interpretations of what is expected, or that one party simply ignores the agreement between the two, that the other thought has been set in stone. In the economy, a protocol is generally a legally non-binding agreement between two or more parties that defines the terms and modalities of mutual understanding or agreement and notes the requirements and responsibilities of each party – without concluding a formal and legally enforceable contract (although a MoU is often a first step towards the development of a formal contract). [2] [3] Your parents probably told you never to sign anything without reading it, and they were right. Don`t think it`s just jargon, or you know what`s going on because you and the funder have talked about it.

Never, ever sign something you haven`t fully read and understood. If you work with other groups, hire consultants or hire organizations to provide services for you or your target audience, it will often be helpful to “receive them in writing.” This section helps you read the two types of documents most organizations need in their dealings with others, and create contracts and memorandas of the agreement. Although these definitions seem quite clear, there are a number of situations where the image becomes blurred. For example, when a Memorandum of Understanding involves an exchange for a sum of money, it is almost always considered a contract under the law. In addition, there are two other legal conditions in which a Memorandum of Understanding or no formal agreement can be treated as a treaty. Each party assumes legal and financial responsibility for the actions of its staff, officers, agents, representatives and volunteers. Each party undertakes to compensate, defend and compensate the other party to the extent permitted by law for all claims, shares, deeds, liabilities, losses, damages and costs, including reasonable legal fees resulting from the acts or omissions of the party compensated in connection with the participation of the party compensated in the context of this agreement , and each party bears the costs of any pro-rata damages attributable to that party`s fault. , its senior managers, representatives, employees and independent contractors.