The article below describes the different elements of an MOU. Your collaboration can use the topics listed in the article to build an agreement that meets your partnership’s unique needs.
In a collaboration, a written agreement – contract, MOU or another type of formal agreement – is an important tool for building long-term stability and success.
A Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) is a written agreement, usually simpler and less formal than a legal contract, which outlines an agreement between parties. An MOU doesn’t need to include complicated legal conditions, exclusions, indemnifications, etc.
A contract is a legally-binding agreement between parties which is enforceable in a court of law. A contract generally includes language defining what would constitute a breach of contract, and outlines the damages or compensation due if a partner fails to fulfill its contractual obligations. A contract may also include indemnification provisions, detailing whether and how a partner bears legal responsibility for the actions of another partner. Compared with a less formal agreement, a contract provides more legal protection to each partner.
Colorado Nonprofit Association suggests your collaboration consult an attorney for assistance creating an agreement that meets the needs of your collaboration. Search our Nonprofit Consultant Directory or check to see if your organization qualifies for pro bono legal assistance.