Imagine sitting having drinks with someone you’re thinking of doing business with… you’re having a great time, thinking you’ve got a great connection with this person, the ideas are flowing back and forth, you have a similar approach to business and it’s clear there’s the potential for the business relationship to be productive.
How do you go about formalizing a relationship like this? One of the ways we do this is through a memorandum of understanding, aka an “MOU”. An MOU is sometimes referred to as a letter of intent, or an “LOI.”
Generally speaking, an MOU is not a binding agreement. It is simply a document that describes the basic terms of the agreement between two or more parties. It expresses the mutual understanding of what both or more parties are interested in doing with one another and sets the stage for the legally binding commitment. In rare cases, an MOU can constitute a binding contract. This can be found where the MOU is so detailed and contains all of the elements of a contract that it looks like the parties intended for it to be bindingIf you’re considering entering into an agreement with one or more people, you might want to consider having an MOU prepared as the fist step. Bovarnick & Associates, LLC., focuses on helping individuals and companies in their business dealings.
If this is something that might be of benefit to you, please give us a call at 215.568.4480 or email us at firstname.lastname@example.org. One call can get you on your way toward a productive business relationship with your future partners.
Robert M. Bovarnick, Esquire