Become a Govt. Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Query on Difference between Agreement and MOU

Anil (1638 Points)

22 September 2008

Please anyone let me know

1) The difference between an Agreement and MOU.

2)In what circumstance Agreement is used and in what circumstance MOU is used.

Thanks.

Reply
Follow
Share

9 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 22 September 2008

The classification of a document in its legality can be explained only on the basis of the clauses (contents) of that document.

Upgrade to CAclubindia Pro. Subscribe Now!

DINESH KUMAR (SERVICE ) (42 Points)
Replied 26 September 2008

Originally posted by :Anil

Agreement is enforceable at law where both parties agree on doing something. Memorandum of Understanding is only intention to do some thing. MOU is not binding in law.

Taxguy (Consultant) (3383 Points)
Replied 26 September 2008

Agreement is a contract yet to performed and is also a record of understanding. It is contract and binding on the parties. Agreement will be usually one where on performs for the

MOU is a mutual agrement where parties agree on eachothers contracts. There will two contracts in MOU one ready to do something or abstain from soing something.

Taxguy (Consultant) (3383 Points)
Replied 26 September 2008

Both are binding and enforceable in law.

(Guest)

is MOU is binding by law

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

I appreciate the efforts of CA club in imparting valuable knowledge at a click of mouse.

thanks and regards

shankar

(Guest)

MOU and agreement are synonomous and both are enforceable. MOU is also a form of agreement .Most of the international contracts are entered in the form of MOUs only.

anjali (service) (85 Points)
Replied 06 September 2010

is mou covered in section 297

madhura (director) (32 Points)
Replied 16 February 2011

i have my own co-operatve society in maharashtra.our former secretery had purchased a room of 170sq ft in MHADA scheme,by an agreement we had already paid him full amount,but he did not produce us a noc for registry.

Actually , that agreement was been made in 1997 on 20 RS stamp paper.but unfortunatrely we did not notary or registered that agreement.and now when we approach him he said he will never registered us that room.but the possession of that room is still under are organisation.so pls kindly suggest me what should i do in this case.

its urgent