A memorandum of agreement, just like a partnership agreement is an agreement signed between two parties who wish to work together. This agreement can be signed between any two parties who plan to work on a project together or to invest their resources in a business. It should be noted here that the objective to achieve would be same for both the parties who sign the memorandum of agreement. Companies or organizations make use of memorandum of agreements to sign partnership pacts with other companies or collaborative parties in order to achieve mutual goals. The major objective behind signing such agreements for both the parties working in collaboration is to prevent themselves from getting involved in any kind of disputes or misunderstandings in the future. So a memorandum of agreement is basically a useful tool that will help them work in peace while following the terms and conditions of the agreement.
A memorandum of agreement incorporates the detailed terms and conditions for the partnership between the two parties. It contains other necessary details needed to develop the partnership while securing the legal rights for both the parties. Besides that other essential details about the both the parties must also be included as part of the memorandum of agreement. Such details might include, brief introduction to the mutual goals and objectives that are needed to be achieved, name and contact information of the both parties and their financial obligations. Date for the issuance of the memorandum of agreement must also be mentioned in the format. In the end, the agreement is closed down after both the parties agree to the terms and conditions mentioned in the format and a place for their signatures is kept at the end of the agreement.