Memorandum of Understanding

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Memorandum of Understanding




(Partner/Agency Name)


(Partner/Agency Name)

WHEREAS, the Parties have decided to undergo the business of [description of business];

WHEREAS, the MOU shall be effective from [date];

NOW, THEREFORE, this Memorandum of Understanding (MOU) sets the following terms and understanding between the (partner) and the (partner) to (insert activity).

  • Background- Importance of Partnership
  • Purpose –MOU purpose and goals of the partnership
  • Terms of MOU- This MOU is effective upon the day and date last signed and duly authorized by the authorized representatives of the parties and governing bodies of the parties. This MOU shall remain in full force and effect [time frame], this MOU shall be terminated, without cause, by either party upon [time frame] required written notice, whereas the notice shall be delivered by hand or by certified mail.
  • Reporting-Specify the record who will evaluate effectiveness and adherence to the agreement.
  • Responsibilities of agencies-MOU include the responsibilities of the agency for costs and expenses related to the Understanding, also including the wages, salaries, benefits regarding equipment’s belonging to other agencies.
  • Payment Terms
  • Duration- This MOU shall become effective upon signature by the authorized representative of the parties and will remain in effect until modified or Terminated by mutual consent. In the absence of mutual consent by the authorized representatives, this MOU shall end on the date of partnership.
  • Confidentiality
  • Dispute resolution

NOW WHEREAS, the effective date of this MOU is the date of the signature last affixed by the parties.


­­­­­­­­­­­[Name and Title]                                                                                   [Name and Title]

…………………………………                                                                        …………………………….

[Date]                                                                                                    [Date]

………………………………….                                                                        …………………….........

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If you are intending to tie up with any entity to do business, then it is advisable to draft a Memorandum Of Understanding (MOU) that shall cover all the promises that parties have agreed upon. Though it does not create any rights and obligation, the Memorandum Of Understanding is legally binding and the document establishes the relationship between the parties very clearly. It is not a contract but an understanding between the parties pertaining to their economic sharing and terms on who is to do what at what time.

eStartIndia is an online legal service platform where a team of expert legal professionals from India, offering a variety of legal services relating to all kinds of company documents, legal notices, negotiable instruments, company registrations, intellectual property, tax services, personal and property services.

Get a Free Consultation for Memorandum Of Understanding with Our Top Rated Experts with a simple registration.


Why Choose eStartIndia For Memorandum Of Understanding?

This organization comprises of expert legal professionals, who use their expertise will draft a Memorandum Of Understanding that shall cover all the legal requirements and needs of the parties. The experience and the knowledge that our professionals hold can help you in including clauses in your Memorandum Of Understanding that shall effectively describe the relationship between the parties as well as avoid confusion or difficulties in the future.


  • DESCRIBE RELATIONSHIP: The Memorandum Of Understanding shall contain all the details of parties and the objective of their partnership which will clearly establish the relationship between the parties and thereby avoid any confusion in the future.

  • FASTER NEGOTIATION: As the terms are already set out in the Memorandum Of Understanding, the parties need not be stuck at creating terms every time they enter into an agreement which makes the negotiation process between the parties to be done much faster.











Registration Process


  • Identify the parties to the Memorandum Of Understanding.

  • Understand the objective of creating this MOU.

  • Plan the requirements for achieving the objectives.

  • Decide on what each party offers and when it shall be executed.

  • Decide on the circumstances where the MOU becomes inapplicable.

  • Plan on sharing of economic benefits.

  • Include clauses where it describes the circumstances where one of the parties can terminate the MOU.

  • Initiate the drafting of Memorandum Of Understanding with the help of a professional.

  • A final draft will be created.

  • The parties must sign the MOU.

Click here to know more about the "Franchise Agreement"



2999 /-

    Package Includes:

    • Drafting MOU by Experienced Lawyers
    • 30-minute Intro Call by Lawyer+ Start to Finish Help + Drafting an MOU

(Professional Fees)


What is difference between MOU and MOA

MOU is made between the parties who are intending to work together to achieve a goal or to indulge in business whereas the Memorandum of Association is a legal document prepared for the purpose of forming a company.

Is MOU a contract?

No, an MOU is not a contract but an understanding between the parties to the MOU on how they will process the work, share economic benefits, who what when will act for the objective of MOU etc. The MOU shall govern their Future transactions.

Is MOU legally binding?

Yes, the MOU is legally binding to the parties but it does not create any rights and obligations.

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