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Memorandum of Agreement basics

When you want you get a new partnership off the ground, clinch an exclusive deal with a supplier, or snap up a hot recruit before a competitor woos them away, a Memorandum Agreement is a quick way to get the process rolling before you sign a formal contract.

Use the Memorandum of Agreement document if:

  • You are ready to enter into a transaction (e.g. purchase, partnership, employment) with a party and would like to have a general understanding of the agreement in place before the details are negotiated and finalized in a subsequent agreement.

A Memorandum Agreement is a useful placeholder that helps you outline terms for nearly any kind of new business relationship. You can use it to set up the foundation for a partnership by laying out specific objectives, milestones, or final outcomes. When you've found your dream home and the buyer agrees to sell, you can protect the deal while you secure financing. If you're a contractor or subcontractor, you can detail a project's scope or timeline. Does your new venture involve confidential information or intellectual property? Put it in writing with a Memorandum Agreement. You can also lay out critical financial details and preferred methods for resolving disputes.

A Memorandum Agreement can buy you the time you need to hash out the details you need for a contract, but it's not a substitute for a legal contract. If you have questions about the legal parameters of your agreement, you should consult with an attorney.

Other names for this document: MOA, Memorandum of Agreement Form, Cooperative Agreement

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Sample Memorandum of Agreement

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