A memorandum of understanding, or MoU, is a non-binding document to show commitment and understanding of responsibilities for an agreement made between two parties. MoUs are essentially used when two parties want to write down their general understanding of a potential transaction they want to engage in.
MoUs are typically made by governmental organizations, non-governmental organizations and corporate entities when partnering with other organizations to document terms and conditions, transactions and negotiations.
There are different types of MoUs used for different types of contracts or services. Here are some major types of MoUs used by businesses:
An MoU for a joint venture agreement is used in the early stages of negotiation between two or more parties. It is also called a co-venture agreement. A joint venture agreement is a temporary business contract between two or more parties to help work towards a common goal. The agreement defines all responsibilities of the parties involved.
There are two main types of joint ventures – contractual and general joint ventures.
A service contract is a legally binding agreement between a service provider and a client which outlines the terms and conditions of the services that will be provided. For example, construction contractors use a service agreement to detail the renovations that they are making to a client's home and to outline how they will be paid for it. Similarly, a business can use a service contract to hire a temporary freelancer or contractor.
A service agreement MoU would detail the services that will be provided to a business in a non-binding document. They are typically used during preliminary negotiations.
An outsourcing agreement is a contract formed between two or more parties, generally a company and a service provider. The service provider promises to deliver specified services, which is outsourced by the company. All outsourcing MoUs contain the following elements:
An asset purchase agreement is an agreement between a buyer and a seller used to transfer ownership of an asset for a set price. The seller decides which specific assets to sell and exclude in an asset purchase agreement. These are the key elements addressed in an asset purchase MoU:
A share purchase agreement is used during the purchase of shares which is essentially the purchase of a company’s operating business. The buyer of shares of a company generally will want some contractual promises about the company, known as warranties, which will continue to bind the shareholder, who is selling the shares, after the sale. A share purchase MoU discuss the following key elements:
A business relationship MoU outlines what each organization agrees to contribute to a partnership, a timeframe for deliverables, details of collaboration, terms and conditions, payments and compensation, etc.
Here are some examples of MoU and when they are used.
You can write a memorandum of understanding by following the steps listed below:
These are the key elements present in any MoU:
MoUs are generally written by organizations or companies offering the collaboration or partnership. Since companies tend to have their own legal counsel, they can draft an MoU fairly easily. It is advisable to seek a business lawyer or a contracts lawyer who understands federal, state and local laws to draft an MoU. However, you can also draft your own MoU using templates available online.
Do you need help writing an MoU? Post a project in ContractsCounsel’s marketplace to get free bids from lawyers that specialize in MoU drafting. All lawyers are vetted by our team and are peer reviewed for you to review before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Clear, consistent, and affordable pricing.
Protect your business today with a legal plans that fits your needs.
ContractsCounsel made it very easy to find a lawyer to help our company with its legal needs.
Cassandra Way CC customerMy legal practice is focused on business transactions like general corporate matters, fundraising, technology contract negotiation, blockchain, crypto or token analysis, and others. I hope to be a good asset to you and looking forward to finding out how I can be of help!
Skilled in the details of complex corporate transactions, I have 15 years experience working with entrepreneurs and businesses to plan and grow for the future. Clients trust me because of the practical guided advice I provide. No deal is too small or complex for me to handle.
With over ten years of intellectual property experience, I’m happy to work on your contractual matter. I am very diligent and enjoy meeting tight deadlines. Drafting memoranda, business transactional documents, termination notices, demand letters, licenses and letter agreements are all in my wheelhouse! Working in a variety of fields, from construction to pharmaceutical, I enjoy resolving any disputes that come across my desk.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
I am an experienced attorney working in New York specializing in executive compensation/severance arrangements, transactional real estate work, tax structuring and contracts.
I graduated from Georgetown Law in 2009 and have been practicing for fourteen years. I primarily work on commercial contracts. I specialize in drafting, reviewing, and negotiating MSAs for services companies, specializing in SaaS agreements. I have drafted online terms of service, acceptance use policies, and privacy policies for clients across a range of industries. In addition, I counsel clients on NDAs, non-solicitation/non-competition agreements, employment contracts, and commercial and residential leases. Prior to opening my own practice, I worked for four years at one of the most prestigious law firms in the world, an appellate litigation firm, the federal government, and one of the country's most renowned government contracts firms. I live in Boulder but represent clients nationwide. Although I have represented numerous Fortune 500 companies and the Defense Department, my passion is advising startups and small businesses. Like so many of my clients, I am an entrepreneur and have owned and operated three businesses (my law firm and two companies outside the legal field). I understand the needs and concerns of small business owners. I look forward to working with you.