Memorandum of agreement is generally presented in business where two parties agreed to work together on a project or meet any agreed objectives. Such a document outlines the cooperative terms that two parties should follow while working in a partnership. Even a clear lineation would also be provided about the responsibilities each of the partners should follow and benefits acquired by each of them.
However, unlike an official business contract, the memorandum of agreement does not bind the two parties legally; instead it simply recites the common objective and interest one should abide by while working in partnership. To obtain the benefit of this document enormously it has to be constructed efficiently and with precision. Hence, while documenting this agreement one should take in account the following points to be included.
In general, the memorandum of agreements has various advantages over the formal contract documents. One of the significant among them is that such an agreement can be enforced without a parliamentary approval and changes can be made in the contract document according to the internal laws and subject of agreement between both the parties involved. That is why memorandum of agreement is highly preferable in US businesses even for making international partnerships as obligations under international law can also be avoided through this agreement document.