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Memorandum of Understanding

Why and what

MOUs are often misunderstood documents. It is a fine line for parties to 100% agree to something when usually at the MOU stage, the details are unknown. What you don't want is an MOU putting you on the hook 100% to an outcome when you don't have all of the information to enable you to make that decision. 

A good way to use an MOU is for the parties to agree that they will work together towards a particular outcome, but without binding themselves to that outcome. For example, you may want to purchase a business and want to have a common understanding about the price, but you don't want to be on the hook to buy the business until you have gone through a proper due diligence process and the purchase has been fully documented by a lawyer.

A straight forward MOU can give you parameters to work within in the lead up to a formal agreement so that everyone is on the same page about the intended outcome, but either party can pull out of the deal at a later stage if something in the due diligence does not stack up. 


Our MOU document is designed to create an agreement for negotiation and due diligence between two companies and for confidentiality to be preserved. It is not designed to create a binding agreement for a sale, purchase or other arrangement. The MOU only takes a few minutes to put together and is fully customisable once downloaded. 

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