Legal Importance &Sanctity of Memorandum of Understanding (MoU)
The professional team of Advocates & Lawyers of Wwww.mylawyersadvice.com are taking up an initiative solely to educate and enlighten the public at large with respect to the various aspects of different laws and/or legislations vis a vis their legal implications and importance while duly considering the legal procedures involved. The professional Advocates & Lawyers are sharing their experiences solely for the purpose of spreading legal education. The name of the actual entity and/or person is hidden and shall be hereinafter mentioned and referred to as “Querist”.
The ”Querist” is a dyeing unit which is established in Panipat and deals with the dyeing of textiles. The “Querist” is a well established Corporate entity and has a good turnover. The “Querist” received a very big order for the dyeing of textiles from one of his relative who deals in final finished product. The relative of the “Querist” gave the “Querist” a very big order which was beyond the output capacity of the dyeing unit. Further, in order to fulfil the order the “Querist” had to buy new equipment and machinery and had to employ more workers. All of this involved costs and expenses, but the “Querist” had no other option. The “Querist” was also hesitant in executing any agreement and/or contract with the relative and was in a perplexed situation.
When the “Querist” approached us, he was advised to execute a Memorandum of Understanding (MoU) with the relative. The Memorandum of Understanding (MoU)is a legally enforceable document which has an appropriate legal sanctity and legal validity. The “Querist” approached the relative with the option of executing an Memorandum of Understanding (MoU) and the relative agreed to the same. The Memorandum of Understanding (MoU) also involves minimum two parties, a lawful consideration and a lawful objective. The terms and conditions mentioned in the Memorandum of Understanding (MoU) are to be completely abided by and complied with by the parties executing the document. Further, in case of a deviation and/or non-adherence the parties can approach the Courts and seek the performance of the Memorandum of Understanding (MoU) and/or can claim the compensation for the damages and losses suffered.
We hope that the case study would envisage the legal importance and sanctity of the Memorandum of Understanding (MoU) to our readers and increase their knowledge about the basics of business laws and/or corporate laws and the contractual liabilities.