Memorandum of Understanding

In Memorandum of Understanding parties record the understanding reached between them. The Memorandum is recorded with the intention that the parties are not binding themselves at that stage and the parties feel that further detailed deliberations are required to finalize the legal Agreement. . As the intention of the parties recording MOU is not to bind themselves legally, care is taken while drafting the same like:

  • Essential ingredient of Agreement.
  • Intention to create Legal relationship is important for enforceable contract.
  • Agreement should be certain & definite .
  • Agreement to agree no concluded contract .
  • Stamp duty.
  • Registration.


  • Check whether name & description of the parties executing Memorandum has been given.
  • Check whether background facts, objects and reasons for execution of Memorandum have given in recitals.
  • Check whether scope and purpose of memorandum has been given in Memorandum.
  • Check whether clauses providing that the intention of parties is not to bind themselves legally and no party shall have right to file a suit for breach of terms of Memorandum by the other party .
  • Check whether Stamp duty has been paid in accordance with the Indian Stamp Act, as applicable in the state in which Memorandum is executed.