This is a framework agreement for the test/trial-co-founder period. PandaTip: A Memorandum of Understanding is a kind of cooperation agreement intended to document the understanding of certain parties (two or more) as to their cooperation in a project or in the achievement of a goal. Unlike a Memorandum of Understanding, it is more likely that a Memorandum of Understanding will impose certain obligations on the parties. Two organizations can sign a memorandum of understanding to cooperate on a program. One of them, on the basis of their agreement, grants grants to set up the programme, and then the other – without whose participation the programme cannot be implemented – resigns. The first organization may then be asked to repay the grant money because it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the second organization could be legally obliged to reimburse the first organization. Or not. It would depend on the circumstances and the judge`s opinion – which is why it is a grey area.
It`s at least as likely that your organization is at the end of a contract or is asked to sign an already designed memorandum of understanding as you will write one. Before we discuss how one of these documents will be created, we`ll look at how to read one. PandaTip: This section presents a context in which the parties met. What is the added value of each party? What expertise or experience do they have that benefits the team as a whole? Drafting a memorandum, as with reading a memorandum, is usually much easier than designing a contract. However, the Box Tool recommends doing the process in the same way and getting as much clarity and specificity as possible. In this way, there will be no misunderstandings or bad feelings about what the agreement contains. This result is even more likely if you and other parties to the agreement design it together. This can be as minor a problem as changing a budget item (for which you may already have a procedure in the contract – see above) or as important as changing the entire content of the activity that the contract covers. In general, these changes should require the agreement of both parties and some negotiations should probably be integrated.
We`ve looked at what you need to know about contracts and agreements if you`re the contractor or registering. What if you are the funder or employer or if you are the organization that asks others to make a deal? In these cases, you need to know how to design the document and make sure it says exactly what you want.