Memorandum of Understanding Examples

In every business transaction, it is often appropriate to possess a memorandum of understanding that will safeguard the whole transaction until it is complete. It is due to issues like this that most people will often do all they can just to ensure there is a set of memorandum of understanding present so that, the whole transaction might be a success. Sometimes, one actually imagines what exactly will happen if there is no sort of agreement whatsoever governing a particular deal or business transaction. Well this kind of answer will only be noted by those who have actually experienced a thing like that. It is however worthwhile to state that, a set of memorandum of understanding can be found in different fields of work or any other thing.

Memorandum of Understanding Examples The most common example of a memorandum of understanding is that of the banking sector. It is well known that, most banking services usually require the presence of a memorandum of understanding. This of course is much known especially to those who like borrowing money from the bank. The banking sector is such that, they will often not leave any stone unturned when it comes to borrowing their money. They therefore see to it that, before money is borrowed from them, there is a clear set of memorandum of understanding written and appropriately signed by both parties that is the bank and the individual or individuals involved. As a matter of fact, they are usually ready to take action when the time is due. Most banks therefore appreciate this kind of document and can therefore not function well without it. It is therefore imperative for them. Below is a typical example of a memorandum of understanding;

Memorandum of understanding

Between

Party A

And

Party B

The two parties will agree to this memorandum of understanding as follows

Article 1; Purpose and Scope

Article 2; Conditions and Arrangements

Article 3; Timing

Article 4; Future Cooperation

The present memorandum of understanding is between the bank and the customer and as such the customer is supposed to obey the rules and regulations of the bank and moreover, the customers will be held responsible for any delay whatsoever.

Signature;…………………………… Signature;……………………………..

For and on behalf

Of;………………………………………

For and on behalf

Of;……………………………………..

Date……………………………………..