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MOU
of
few
too
many
White
Russians.
It's
agreements,
sometimes
called
gentlemen's
offer, what they are willing to negotiate, and the rationale for
an MOU. Perhaps most important, the MOU spells out the
parties' common objectives.
After the initial draft is written, representatives for the parties
meet in person to negotiate and haggle over the MOU's finer
points. Many MOUs spell out communication details, such as
descriptions of both parties' capabilities and how they related
to each other's' interests. The MOU may also document
contact information for each party's representatives, set
dates for performance reviews and create processes for
dispute resolution.
Other specific terms of the agreement are usually included,
too, such as when the agreement begins, how long it lasts
and how one or both entities can terminate the MOU. An MOU
can also have disclaimers and restrictions, as well as privacy
statements. Once they come to an agreement on those
details, both parties sign the MOU.
All of these might sound like elements that would appear in a
contract, but remember that MOUs are not legally binding.
Well, not usually, anyway. This being law, there are always
exceptions, and as you'll find out on the next page, if one or
both parties aren't paying close attention, contract-flavored
memoranda of understanding can leave behind a very bad
taste.
You've already seen the kind of information that's normally
included in MOUs. This information often resembles the terms
of a legally binding contract, but MOUs typically are not
enforceable. However, there are exceptions and stipulations
that can spell serious legal consequences for parties who
break memoranda of understanding.
For example, if the content of the MOU is exactly like a
contract in language and intent, then a court is likely to call it
a contract, no matter what title might appear on the front
page.
This
issue
arises
often,
as
parties
attempt
to
that
normally
define
contract:
an
offer,
like
MOUs.
Without
standards,
memoranda
of