Mastering the Art of Drafting Memorandum of Understanding (MoU) in Tanzania: A Comprehensive Guide.

What is memorundum of understanding?

A Memorandum of Understanding (MOU) is a document used to outline the terms and details of an agreement or understanding between two or more parties. It is a preliminary step to formalize a relationship, establish mutual understanding, and facilitate cooperation between the involved parties. 

here is template on how its drafted:-

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding is made this …… day of……………, ……….

BETWEEN

XXX…………………………… of P.O. Box …………………………………….(hereinafter

referred to as the “Purchaser”) of one part

AND

YYY……………………………of P.O. Box …………………………………….(hereinafter

referred to as the “Seller”) of the other part

WHEREAS ………………………………………herein above referred to as the Purchaser.

NOW THIS MEMORANDUM OF UNDERSTANDING WITNESSETH as follows:-

1. That the Seller has agreed with the Purchaser That the Vehicle shall be handed over by the Seller to the Purchaser in good running condition and on or before …….. days after signing of this agreement.

IN WITNESS WHEREOF the parties hereto have executed these presents in the manner and on the day and year hereinafter appearing.

SIGNED and DELIVERED for ……

……………………… Who has been identified to me by ……………………

………………………. the latter being

Known to me personally in my presence this Seller ………day of……………., ………..

Signature: ………………………………….

Postal Address: ………………………………

Qualification: …………………………………..

SIGNED and DELIVERED by ………

……………………..

Who has been identified to me by

………………………….the latter being ……………… Known to me personally in my presence this Purchaser

……. day of …………., …………

Signature: ………………………………….

Postal Address: ………………………………

Qualification: …………………………………..

Key features of a Memorandum of Understanding include:

  1. Parties involved: The MOU identifies the parties or organizations entering into the agreement. It could be between two companies, government agencies, universities, or any combination of entities.
  2. Objective: The document clearly states the purpose and objectives of the understanding. It explains what the parties intend to achieve by working together.
  3. Scope of work: The MOU outlines the specific activities or tasks that the parties will collaborate on and the responsibilities of each party.
  4. Duration: It specifies the time frame or duration of the understanding, indicating when the agreement begins and when it terminates.
  5. Confidentiality: In some cases, an MOU includes provisions regarding the confidentiality of information shared between the parties during the collaboration.
  6. Non-binding nature: While an MOU is a formal document, it is typically not legally binding like a contract. It serves as a starting point for further negotiations and discussions to formalize a legally binding contract or agreement.
  7. Costs and resources: If there are any financial or resource commitments from either party, the MOU may outline the contributions or obligations of each party.
  8. Dispute resolution: It may include provisions for resolving disputes or disagreements that may arise during the collaboration.

An MOU is often used as a tool to establish trust and commitment between parties before they invest significant time and resources into a more comprehensive and legally binding agreement. While not legally binding, the document is considered a serious commitment, and parties involved are expected to honor the principles and terms outlined in the MOU.