Memorandum of Agreement—From A to Z
Are you looking for a way to define the rules and terms of collaboration, but a contract is too official? Drawing up a memorandum of agreement is the way to go!
This article will give you insight into the memorandum of agreement and show you some tips and tricks on making the most suitable one.
What Is a Memorandum of Agreement?
The memorandum of agreement (MOA) is a formal document that outlines the terms of an agreement made between two parties. It describes a mutual relationship between two individuals or organizations working on the same project or towards the same goal. A memorandum of agreement is not a legal document, and it is unenforceable in court. The agreement usually comes before a more detailed and strictly defined contract, but that is not always the outcome.
A memorandum of agreement is used to:
- Agree to share something, such as a working space or devices
- Establish a collaborative agreement
- Define terms of a relationship between two parties
- Agree to work with the other party in specific ways or collaborate if an opportunity presents
The Difference Between an MOA and Contract
People often mistake a memorandum of agreement for a contract because the differences between the two often blur. The main difference is that a contract is legally binding and enforceable in court, and a memorandum of agreement is neither.
In the table below, you can find a brief overview of what constitutes a contract vs. memorandum of agreement:
| Contract | Memorandum of Agreement (MOA) |
|
|
There are cases when a violation of an MOA can have legal consequences. If one party fails to accomplish what is agreed upon and the other party suffers a financial loss, the damaged party may be able to take it to court. Whether the lawsuit will stand in court or not depends on the severity of the loss and the specifics of the case.
What Should a Memorandum of Agreement Cover?
Not being legally binding does not mean an MOA shouldn’t have specific terms and conditions. Here is what a memorandum of agreement usually includes:
- Authority
- Purpose of the MOA
- Names of the parties
- Description of the collaboration
- Financial obligations and payment schedule, if applicable
- Dates when the agreement is in effect
- Contact information of both parties
- Description of roles and responsibilities
- Duration of the MOA
- Modification and termination policies
- Signatures
Useful Tips for Writing a Memorandum of Agreement
A memorandum of agreement is an important part of a partnership or collaboration, whether it is followed by a contract or not. Involved parties usually discuss the terms and conditions beforehand, but it is useful to have them in written form. Even though a memorandum of agreement won’t stand in court, it can act as a moral obligation.
You may find the following tips useful when writing a memorandum of agreement:
- Be clear and concise—use short-structured sentences
- Strive for balance—use the phrase “both parties agree”
- Write in positive language—focus on what the parties will do, not what they won’t
- Be specific—address all the how, who, what, and when questions
- Make sure all involved parties agree—give the agreement to all parties to read before making it official
Where To Find a Memorandum of Agreement Template
If you don’t know how to write a contract or memorandum of agreement, you can always try looking up templates online. When choosing memorandum of agreement templates, you should:
- Avoid sketchy websites
- See if any law firm or law school offers an MOA template
- Read the templates carefully
How To Draw Up Legal Documents With DoNotPay
Writing contracts on your own is a demanding task as it requires knowledge and experience in legal matters. It also bears a lot of responsibility because one mistake can make a contract void and unenforceable in court. To avoid that, people usually hire attorneys to draft legal documents in their name. What to do when you don’t want to pay the earth for legal assistance?
Even though hiring a lawyer seems like the only reliable option, it is not —you can use DoNotPay.
Our Standardized Legal Documents feature is a life-saver when it comes to creating contracts and other legal documents. It is practical and easy to use, and here’s how:
- Access DoNotPay from a
- Type in the name of the document you want to create
- Answer to our chatbot’s questions
You will get a custom-made legal document that you can later sign, notarize, or send to other parties using our practical online faxing service.
What Legal Documents Can DoNotPay Create?
You can rely on the world’s first robot lawyer——to create a myriad of legal documents, including:
- LLC Operating Rules Document
- Quitclaim Deed
- Estoppel Certificate
- Intent to Purchase Real Estate
- General Affidavit
- Non-Compete Agreement
- Residential Lease Agreement
- Bill of Sale
- Promissory Note
- Prenuptial Agreement
- Child Custody Agreement
- General Business Contract
- Independent Contractor Agreement
- Child Care Authorization Form
- Non-Disclosure Agreement
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