Memorandum of Understanding

A Memorandum of Understanding (MOU) is simply a written agreement to identify the working relationships and guidelines between collaborating entities. An MOU spells out the common understandings. It clarifies what kind of support will be provided and creates more meaningful ways for communication or participation. It defines the rights and responsibilities of each involved entity. Here are some typical components of an MOU, with sample language:

Purpose and Agreement(s)

The memorandum should state the purpose and goals of the collaboration or partnership between the two entities. The specific agreements should be detailed into separate paragraphs or listings along the lines of "What [X Agency] Will Do" and "What [Y Group] Will Do."

Duration of Term of Memorandum and Termination Process

The memorandum should identify the beginning and ending dates of the agreement or its duration.

Example:

This memorandum shall commence on [date] and shall continue for a period of [ending date/number of years]. The memorandum should also identify how the MOU can be terminated.

Example:

This memorandum may be terminated by either party giving the other party [three months'] notice in writing.

Meetings and Reporting

An MOU describes the interaction between the organizations. It provides a structure, such as a specific meeting time, or the "as needed" informal expectations of either party. It is also a way for parties to specify their reporting needs and timeframes.

Example:

To accomplish the purpose and objective outlined in the MOU, partners will meet at least [twice] a year.

Financial Considerations

The financial or funding support situation should be explained. Someone may need to take responsibility for financial record keeping and reporting. Specify who will review and approve expenditures and financial decisions on behalf of the collaboration, if needed.

Here are a few examples of statements for program collaborations or partnerships where funding is not part of the agreements:

Nothing in this MOU shall be deemed to be a commitment or obligation of funds from either …. or …… (or any of their various components).

The entities acknowledge that all or any financial arrangements must be negotiated and will depend upon the availability of funds.

Signatures with Dates

Once the MOU is prepared and agreed upon by the parties involved, it should be signed and dated by the authorized individuals representing each partner or organization. Copies should be kept in an easily accessible location by both entities.

Example

The following is an example template with sample language for Memorandum of Understanding (MOU). Please note that other sections may need to be added, depending on the nature of the agreement and the parties involved. The duties and responsibilities of each party should be clearly defined. Please state what is to be done or what is expected in plain, simple language. Be specific about any financial or other resource obligations of each party and include the dates when the actions are to be taken and completed.

Sample 1

MOU between …...... and ……..... and …….......

PURPOSE

This Memorandum of Agreement establishes the guidelines for collaboration between ….. and the ________ in the delivery of Employment Services Contract 2009 -2012

Agreement:

The ________.... and ……. and ……. hereby agree to work together to:

1.
2.
3.
4.
5.
6. Jointly identify and support the reporting requirements of each organization.

MEETINGS AND REPORTING

To accomplish these objectives, partners will meet at least ___times a year for program planning and monitoring and evaluating outcomes. Decisions at the meeting will be decided by…….. (the simple majority, consensus, etc)

FUNDING and Financial Responsibilities:

For – (insert specific financial arrangements)
-
For -:
-
-
For-:
-

DURATION:

This MOU is at-will and may be modified with the mutual consent of the authorized individuals of …. and ________.... and …... Once signed by authorized officials of both groups, this MOU will begin [Month Day, Year] and remain in effect until [Month Day, Year].

Signed,

Name________________________________________
Organization________________________________________
Title________________________________________
Date________________________________________
Name_____
___________________________________
Organization________________________________________
Title________________________________________
Date________________________________________

Some additional Clauses that may be included:

Staff

It is agreed by the parties to this MOU to jointly appoint a suitably qualified Manager to manage the programs. The terms and conditions and remuneration for this position will be determined by the parties to this agreement.

All other staff employed as a result of obtaining business shall be employed by……..

MEMORANDUM OF UNDERSTANDING / AGREEMENT

This Memorandum of Undertaking is made on this day, the ………………………. between National Institute of Agricultural Extension Management (MANAGE) herein referred to as MANAGE having its office at Rajendranagar, Hyderabad – 500 030 which expression shall include authorized representative of the first part training centre, viz……

having its Office at …………………………………………………………………………

(hereinafter referred to as Training Centre represented by its authorized representative) of the second part, for the state of …………………………………………………………………………

The Programme for which this MoU is signed is to be known as the “Network of Agri-clinics and Agri-business Centres by Agriculture Graduates Scheme” of the Government of India.

Whereas the Training Centre is desirous of undertaking a joint project for the training and handholding component of the said Scheme with MANAGE, the two parties to this Memorandum of Understanding, with the intention of both being legally bound, accept the following terms and conditions:

Coordination and Contact Points

• MANAGE for coordination on broad policy issues and matters related to centralized operations.
• Training Centre for all operational matters which includes training, handholding component as per MANAGE guidelines.

Responsibilities of the Training Centre

The Training Centre shall;

• Organize training and handholding activities under the Agri-Clinics and Agri-Business Centres Scheme as per the MANAGE guidelines.
• Ascertain for itself the financial viability of the project and shall fund all cost overruns, if any;
• Not make any financial commitment on behalf of MANAGE, nor shall take loans or create any other financial liability binding MANAGE under this agreement;
• Have all employees relating to this project on its payroll, or shall invite outside Guest Speakers/faculty on its own, and MANAGE shall have no legal, financial or any other responsibility towards them;
• Follow the course outline supplied by MANAGE, as may be amended from time to time;
• Conduct no such parallel activity which may be prejudicial to the interests of the said Scheme, or MANAGE;
• Maintain records of the trainees and their regular attendance, and share them with MANAGE;
• Provide the following minimum infrastructural facilities:

• Computers with the necessary software
• Printers and photocopiers, as required
• TV/VCR/ACR
• Rooms for the conduct of counseling
• Necessary furniture.

• Assist in the conduct of study visits, field visits, etc.;
• Not realize any fee from the trainees in any form whatsoever;
• Incur expenditure on all operations/services as per the financial guidelines of MANAGE.
• Provide free of cost handholding facilities, counseling, and guidance to the trainees for 1 year after the training.
• Register candidates for organizing training programmes

Responsibilities of MANAGE:

The MANAGE shall:

1. Develop and provide a broad course outline to the Training Centre.
2. Provide a list of trainees allotted to each Training Centre or be entitled to ask the training institute to generate applications.
3. Provide norms and guidelines wherever necessary;
4. Provide a lump-sum grant to the Training Centres on a per trainee basis at the rates fixed by Scheme guidelines.
5. Be responsible for the logistics and operational aspects of the training component of the said Scheme;
6. Provide timely clarifications regarding Academic Inputs and any other necessary information to the Training Centre;
7. Shall ensure through proper co-ordination and consultation that all the Training Centres provide quality training under the said Scheme;
8. Shall ensure that all amounts released under the said Scheme to them by GOI, shall be disbursed to the Training Centres timely, and keep a track of the number of trainees attending the programmes at each Training Centre.

Force Majeure

In the event of non-fulfillment of the contract terms and conditions due to any reason of force majeure namely fires, wars, riots, strikes, natural calamities, etc., neither the Training Centre nor MANAGE shall be held responsible for any loss or consequential loss.

Indemnity

The Training Centre hereby agrees jointly and severally to indemnify MANAGE, their representatives, administrators, and properties from and against all action, demands, proceedings, prosecutions, attachments, and the like arising out of its liabilities and all charges, taxes, etc.

Similarly, MANAGE shall be liable to indemnify/compensate the Training Centre on account of any losses arising due to the fault of MANAGE.

Liabilities

MANAGE shall not, however, be liable for:

1. any payments of claims by employees of the Training Centre
2. discharging any financial commitments made by the Training Centre.
3. Any suit on account of demands for infringement of copyright and other laws by the Training Centre which have no nexus with the object of the MoU being entered into.

The Training Centre shall ensure that all its software is legal. MANAGER shall not be responsible in any way for any liabilities arising out of the use of pirated software.

Breach of Agreement

MANAGE shall have the right to terminate the agreement with the Training Centre, in case the Training Centre either fails to provide the services successfully as mentioned in the agreement, or violates any of the clause mentioned in the MOU, or exploits the students or misuses the partnership with MANAGE in any way.

Amendment to the Agreement

The obligation of the Training Centre and MANAGE have been outlined in this agreement. However, during the operation of the agreement, circumstances may arise which call for alteration or modifications of this Agreement. These modifications/alterations will be mutually discussed and agreed upon in writing.

Period of Validity

This agreement shall be initially valid for one year from the date of signing the agreement and to be renewed subsequently by mutual consent of both the parties.

Arbitration

Any dispute arising about any aspect of this Agreement shall be settled through mutual consultations and agreements by the parties to the Agreement.