What is the difference between Mou and contract? Both MOU and contract are two ways of entering into a form of agreement. The key difference between MOU and contract is that MOU is an agreement between two or more parties that is not legally binding whereas a contract is a legally binding agreement between two or more parties that creates an obligation to do (or not do) a particular task.
See full list on differencebetween. MOU (Memorandum of Understanding) is an agreement between two or more parties where MOU does not intend a legal enforcement between the parties.
MOU may state that the parties “agree to promote and support the joint use of facilities”, but this does not amount to a legally binding clause. MOU is a written agreement where the agreement terms are clearly defined and agreed upon with the objectives intended to achieve. MOUs are often first steps towards legally binding contracts.
A contract is a legally binding agreement between two or more parties that creates an obligation to do (or not do) a particular task. Offer and acceptance 2. An intention between the parties to create binding relations 3. Capacity of the parties to act 6. Consent of the parties 5. (more…)