Is an MOU enforceable just like a contract?

Question

If two parties sign an MOU, is it enforceable in court just like a contract would be? What is the difference?

Answer 1

A standard MOU from one government entity to another is binding.

If this is the case I cannot see why your would be different.

Answer 2

No, it's not.

A memorandum of understanding is just an agreement to make a contract -- it does not have the same force as the later contract.

However, a MOU may itself be a separate contract -- but that is uncommon because the MOU usually doesn't have the same consideration that an actual contract has.

Answer 3

Well, a MOU is not all that different from a "handshake" that is to agree to something from both parties. It is not legally binding and the same applies to Memorandum of Understanding. It is NOT a contract that allows for legal recourse. Maybe, a compromise can be reached??? I hope that this helps.

Answer 4

It depends upon the words and intent of the parties. If it says, "shall do x in exchange for y", then yes, it is a contract in the form of an MOU. If it says, "expects to do x in exchange for evaluation of y," then no it only envisions a contract.

A binding MOU may even have liquidated damages for breach or other termination, say, where you are considering purchase of a company and they stop discussions with other buyers, pending a contract for sale.

Answer 5

No, not at all. An MOU is merely an agreement to agree on something and it is NOT binding at all. It is merely an expression of intentions.

Answer 6

not unless you record the agreement.. its basically he said she said if not. a contract is more binding, and you have it in writing thats the way to go..