Contract a Memorandum of Agreement
Commonly referred to as a memorandum of understanding, a memorandum of agreement is a document that is drafted to detail the scope of a partnership or association and the mutual responsibilities of the parties of that relationship. Unlike a contract the "memorandum" is not a legally binding document, and serves merely as a informational instrument, which gives both parties a clear picture of all objectives and intentions relating to a particular issue. A meeting should be held to determine the particulars of the memorandum and the details about each party and services to be rendered, or other specifications.
Instructions
1. Insert heading in the first line. In the first line of the document, insert the words, "MEMORANDUM OF AGREEMENT", in all capital letters-center the line. This line will operate as the title and will identify the document.
2. Identify the parties of the agreement. Below the title line begin a the first paragraph with the statement, "This agreement is made between [insert first party's name] and [insert second party's name], on the ___ day of ________ 20___". When creating this introduction you want to also add specifics about the parties. For instance, if the agreement is between a contractor and a construction company, the introduction would state the type of company and where the company is headquartered (i.e., "a construction company headquartered out of Cleveland, Ohio").
3. Explain the subject matter of the agreement, and the objectives. In the next paragraph explain the venture that is at hand, and the overall intent, of the parties involved. For example, if there is a contractor and construction company, as in the previous step, the paragraph would start saying, "Whereas Don's Building and Miller's Construction, hereby agree to launch a commercial construction project, on the lot located on the corner of Superior Avenue and St. Clair Avenue, in Cleveland, on or about March 7th, 20__."
4. Outline the essential terms of the agreement. In the next paragraph cover the details about the agreement. In this section address the specified time period for the venture, assignments and responsibilities of each party, disclaimers, financial arrangements and risk-sharing among the parties. Be very clear and specific in this section.
5. Conclude the memorandum by inserting signatory fields. Once the details of the agreement are complete, insert two uniform signatory lines, and beneath these lines insert the names of the signatory parties signing the agreement. If there are companies involved, insert the company name, and the name/title of the signatory representative. Insert the word "Date" on the far right of each signatory line, to indicate where the parties are to write the date when signing.
