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overview

Memorandum of Understanding (MoU)

A Memorandum of Understanding (MoU) is a formal document that records an agreement
between two or more parties. While not legally binding, it sets the foundation for future
contracts and negotiations. It helps both sides align on priorities before signing a
binding contract, making it an important first step in partnerships,
business deals, or international agreements.

MoU-OUTLINE

Outline

  1. Title – Clearly mention “Memorandum of Understanding” with parties’ names.
  2. Introduction / Preamble – Purpose and intent of the MoU.
  3. Parties Involved – Full details of each party (name, address, designation).
  4. Objectives – Scope, goals, and expected outcomes of the collaboration.
  5. Roles & Responsibilities – Specific duties of each party.
  6. Terms of Agreement – Duration, timelines, and working conditions.
  7. Financial Arrangements – Cost-sharing, funding, or resource allocation (if applicable).
  8. Confidentiality Clause – Protecting sensitive or shared information.
  9. Dispute Resolution – Process in case of disagreements.
  10. Amendments – How changes to the MoU can be made.
  11. Termination Clause – Circumstances under which the MoU ends.
  12. Signatures & Date – Authorized representatives of all parties.

📋 MoU Checklist

Before signing, ensure your Memorandum of Understanding (MoU) includes the following key details between the recipient, sub-recipient, and third-party service provider:

Organisational Information
Basic details of all parties involved — including legal names, addresses, and primary contact information.

Identification Details
Clear identification of the recipient, sub-recipient, and their respective points of contact.

Service Provider Details
Information about the designated service provider and their authorized contact person.

Commitment Statement
A declaration of the service provider’s firm commitment to deliver agreed-upon services.

Scope of Services
A precise definition of the services to be provided, along with measurable deliverables.

Service Description
Comprehensive outline of how the services will be executed and monitored.

Contract Alignment
Ensure the MoU corresponds to the primary contract or grant agreement.

Client Volume
Specify the number of clients to be served at any point and the total over the contract’s duration.

Service Provider Qualifications
Include credentials, expertise, or certifications of the service provider.

Cost Estimation
Detailed estimation of costs associated with the services being offered.

Record Maintenance
Procedure for maintaining and matching service records throughout the engagement.

Documentation Requirements
Specify what supporting documents and reports need to be submitted.

Roles & Responsibilities
Define the obligations of both service providers and recipients clearly.

Service Timelines
Establish standard timelines for service delivery, reporting, and review.

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