Standing Memorandum Of Agreement

Posted on April 12, 2021

Two organizations can sign a Memorandum of Understanding to cooperate on a program. One of them spends money on the basis of their agreement to set up the program and the other – without whose participation the program cannot work – turns around. The first organization may then be required to repay the grant allowance, since it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the law could force the second organization to reimburse the first organization… or maybe not. It would depend on the circumstances and the opinion of the judge – so it is a grey area. A Memorandum of Understanding, as has already been said, is not a legal document and will not be tried. They cannot use it – except morally – to hold another organization to what it has promised. But you can encourage it as a guide, memory. Sometimes donors, in trying to promote cooperation, require agreements with certain agencies or organizations submitted with funding proposals.

These agreements generally specify the obligation for the signatory to cooperate with the organization that, in a certain way, solicits funding – participant, receive recommendations or, for example, carry out activities on an advisory board. An agreement is an expressive consent. It shows that the parties have reached an agreement and are making progress. Although not legally binding, it is a serious explanation for the impending treaty. The development of a Memorandum of Understanding is therefore similar to the development of a treaty, except that the terms of the agreement will probably have been discussed in advance by all parties. Most agreements are nothing more than attempts to clearly state in writing what the parties have already developed and agreed to at the meetings. Where this is not the case, the parties will generally discuss the memorandum already drafted and develop all the differences before it is signed. The biggest difference between a contract and a Memorandum of Understanding is that a contract is a legal document and is enforceable in court, whereas an agreement is neither nor an agreement. We will look at each person one after the other, and we will also look at places where the differences between them are blurring. This may be as minor a problem as changing a budget item (for which you may already have a procedure in the contract – see above) or changing all the content of the activity that is covered by the treaty.

In general, such changes should require the agreement of both parties and some negotiations are likely to take place. We`ve looked at what you need to know about contracts and agreements whether you`re the contractor or when you sign up.


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