Memorandum of Understanding Definition

There is usually so much joy and happiness when business partners have some kind of agreement between them concerning their businesses. As a matter of fact, it is really appropriate to possess something like that, when dealing in business. Therefore when one actually looks at it in this direction, it will be realised that a memorandum of understanding is very necessary. This particular sort of agreement actually makes things very easy and straight to the point. It is however worthwhile to state that, a memorandum of understanding has different definition and therefore there may be different perceptions towards it.

Memorandum of Understanding Definition In the first place, one may define this sort of agreement simply as an understanding between two parties. The word understanding is used in the sense that it enables those actually involved to be able to sort out their problems amicably. And of course this is very necessary since every one usually wishes for total understanding in every adventure. There are instances whereby business partners just slain each other simply because of misunderstanding. Memorandum of understanding is always necessary in every aspect. Be it in the law court, business deals, football matches or any other crucial thing one can ever think about. It is really something that should be practiced all the time in order to prevent total misunderstanding. Below is an a typical example of a memorandum of understanding;

Memorandum of understanding

Between

Party A

And

Party B

The parties to this particular memorandum of understanding agree to the following;

Agreement 1; Purpose and scope

Agreement 2; Conditions and Arrangements

Agreement 3; Timing

Agreement 4; Future Cooperation

The present memorandum of understanding strictly follows all the rules and regulations of the two parties and as such this can be altered anytime the two agree to that.

Signature………………………. Signature…………………………..

For and on behalf

Of ………………………………..

For and on behalf

Of……………………………………….

Date……………………………………..

Most of these memorandum of understanding of understanding are usually a success provided the two parties obey all what is supposed to be done.