About MOU

The MoU is a preliminary agreement, in the sense that it will be followed and elaborated in other agreements that regulate it in detail, therefore, the memorandum of understanding contains only the main points. As for the other aspects of the MoU it is relatively the same as other agreements.

From the above explanation it can be concluded that the MoU is not a contract and is still a pre-contract. Therefore, in the MoU it is usually stated "intention to create legal relations" by the two parties.

There are also MoUs that have legal consequences for those who break them. Why were the legal consequences added to the MoU? There are three considerations adding these legal consequences, namely;

    1.So that both parties avoid the seriousness of one of the parties to the MoU, for example canceling an agreement unilaterally without a clear reason.
    2.So that both parties avoid various losses, both financial and non-financial that have been incurred by these parties.
    3.To maintain the confidentiality of information / data provided during pre-contract activities.


Characteristics of Memorandum of Understanding (MoU)

We can recognize a memorandum of understanding by looking at its characteristics. Referring to the meaning of the MoU above, the characteristics of the MoU are as follows:

    - Generally the contents of the MoU are made concise, often even only made in one page.
    - The contents in the MoU are things that are basic or general in nature.
    - The MoU is preliminary, which will be followed by other agreements whose contents are more detailed.
    - The term MoU has a fairly short period of time, for example a month to one year. If there is no follow up with a more concise agreement from both parties, then the
      memorandum of agreement is canceled.
    - Generally a memorandum of understanding is made in the form of an underhand agreement.
    - The MoU is used as a basis for making agreements for the interests of many parties, such as investors, creditors, shareholders, the government, and others.

To find out how to use the Untad MOU (SIM-MOU) Information System, please click here

About MOA

Memorandum of Agreement (MOA) is a written document that describes a cooperative relationship between two parties who want to work together on a project or to meet agreed upon goals. The MOA functions as a legal document and explains the terms and details of the partnership agreement. MOA is more formal than verbal agreement, but less formal than contract. Organizations can use the MOA to establish and define collaborative agreements, including service partnerships or agreements to provide technical assistance and training. The MOA can be used regardless of whether money will be exchanged or not as part of the agreement.

Typical formats of MOA include:

  • Authority
  • Purpose of the Agreement
  • Names of parties involved
  • A brief description of the scope of work
  • Financial obligations of each party, if applicable
  • Agreement date applies
  • Key contacts for each party involved
  • Detailed description of roles and responsibilities
  • Payment Schedule if Applicable
  • Duration of the agreement
  • Termination Modifications
  • Principal's Signature of the Parties