Memorandum of understanding (MoU)
असेही म्हटले जाते: MoU
A written document recording what two or more parties have agreed to do together. Whether it binds them like a contract depends on its wording and their intention.
An MoU records the shared understanding of the parties, often at an early stage: a collaboration between companies, a joint project between institutions, or the main terms before a detailed agreement.
Is an MoU binding
There is no special law for MoUs. Whether an MoU is enforceable depends on the Indian Contract Act, 1872. If it shows an intention to create legal relations and has the elements of a contract (offer and acceptance, consideration, free consent, lawful object, and certainty of terms), it can be enforced like any other contract. If it only records an intention to negotiate, or says it is not binding, it usually is not.
Make your intention clear
- Say expressly which clauses are binding (for example confidentiality, exclusivity and costs) and which are not.
- Set a date by which the final agreement will be signed, and what happens if it is not.
- State the governing law and how disputes will be resolved.
- Pay any stamp duty the State law requires for an agreement of that kind.
Name does not decide
Courts look at the substance of the document, not its title. An MoU with firm obligations can be enforced, and an 'agreement' with vague terms may not be.
Draft a memorandum of understanding, a term sheet or a joint venture agreement.
खालील स्रोतांच्या विरुद्ध तपासले ७ नोव्हेंबर, २०२६ IST. भारतीय कायद्याबद्दलची सामान्य माहिती, तुमच्या खटल्यासाठी कायदेशीर सल्ला नाही.