Memorandums of Understanding: What Are They Good For?

In a memorandum of understanding, collective parties detail their agreement in a formal document. Despite its lack of legal force, it expresses the parties’ intention to proceed with a contract. Negotiations can begin with the MOU, which outlines the parameters and goals of the discussions. In addition to international treaty negotiations, these memoranda can be used in risky corporate negotiations, such as mergers. Often, memorandums of agreement do not have legal force and cannot be enforced. The document qualifies as an agreement only when it identifies business connections that eventually lead to a formal contract agreement. Why Is a Memorandum […]