“The term Memorandum of Understanding (M.O.U.) is often used to refer to a less formal international instrument as a typical treaty or agreement. Operational agreements are often established within the framework of an international framework agreement. It is also used for the regulation of technical or detailed issues. Sometimes, when trying to encourage cooperation, funders require letters of intent with specific agencies or organizations that must be submitted with funding proposals. These agreements usually indicate the signatory`s obligation to cooperate with the organization requesting funding in a certain way – by . B refer participants, accept recommendations or work on an advisory board. Your organization is at least as likely to be at the end of a contract or to be invited to sign an already drafted MEMORANDUM of Understanding as you are to draft one. Before we discuss how to create one of these documents, we`ll look at how to read one. The guidelines for reading a memorandum of understanding are essentially the same.
These are usually not written in legal language and can be quite simple, so reading and understanding can be much easier. Even if it is not a legal document, a memorandum of understanding is a promise and should be treated by the signatories in the same way as a contract: you should feel bound by it, and if you sign it, you must make every effort to execute its terms. As a general rule, you won`t go wrong if you`re too detailed. The trick is not to limit the activity to the point that no innovation or flexibility is possible. The contract should not be seen as a micromanagement opportunity, but at the same time be specific enough for all parties to do what they are supposed to do and for each party to have recourse in the event of a problem. Two organizations may sign a Memorandum of Understanding to collaborate on a program. One of them, on the basis of their agreement, issues grants to set up the programme, and then the other – without whose participation the programme cannot be carried out – resigns. The first organization can then be asked to repay the grant money because it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the second organization could be legally obliged to reimburse the first organization. Or not. It depends on the circumstances and the opinion of the judge – that`s why it`s a grey area. Drafting a memorandum of understanding is therefore similar to drafting a contract, except that the terms of the agreement have probably been discussed beforehand by all parties.
Most memoranda are nothing more than attempts to clearly state in writing what the parties have already developed and agreed at meetings. If this is not the case, the parties usually discuss the memorandum already drafted and settle any differences before it is signed. Explain the consequences if one of the parties does not deliver what they have agreed. .