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Memorandum of Understanding

Memorandum of Understanding Bank

It is a normal thing for a bank to emphasize on a set of memorandum of understanding any time there is to be any sort of business transaction to take place. This agreement basically gives the customer and the bankers and for that matter the bank to truly appreciate and agree to important matters before the deal takes off. This is always very necessary because it enables the bankers to truly know when the deal is to end and also the exact effect of the deal they are about to transact with that customer. Every transaction in a bank therefore requires a set of memorandum of understanding.

Memorandum of Understanding Bank Most banks often appreciate the usage of this fine tool because they know it serves as a major guide to their success as bankers. It is therefore very imperative to mention that, banks actually do profit a lot due to the presence of a memorandum of understanding. This particular agreement is often made in such a way that the customer understands vividly what exactly is going on before he or she signs to the agreement. It is often the wish of bankers to allow the customer read and understands perfectly the agreement so that, in case there is some sort of disagreements by the customer, it can be sorted out before anything happens. As a matter of fact, there are some customers who do not always understand exactly what is going on and yet go ahead to sign the set of memorandum of understanding. Though it may be some sort of ignorance, it is still crucial that there is agreement between the two. Below is a typical example of a set of memorandum of understanding;

Memorandum of Understanding

Between

Party X

And

Party Y

The two parties agree completely 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 is between party A and party B and non of the parties has the right whatsoever to break the rules and regulations.

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

For and on behalf

Of;……………………………………

For and on behalf

Of;…………………………………

Date;………………………………