Memorandum Of Understanding Is Not A Binding Contract

Memorandum Of Understanding Is Not A Binding Contract.

DAILY LAW TIPS by Onyekachi Umah,Esq. (Tip 201)

Contract is a binding agreement between parties, creating a commitment to do or not to do a particluar thing. Memorandum of Understanding (MOU) is a mere expression of intention by parties, a preliminary understanding of parties to later enter into a formal contract but not on its own a contract and as such not binding and not enforceable by parties.

MOU could come in the form of “Heads of Agreement”, “Letter of Intent”, and “Heads of Terms”. They are not binding agreements but

an expression of intentions subject to certain circumstances. It is also common to find full fledged binding agreements that are ignorantly or mischievously titled Memorandum of Agreements.

In all situations, the words and contents of an agreement (as well as conduct of parties) a what the court must consider in finding the true intentions of parties and the implication of their MOU. To ensure you don’t sign a Contract instead of a mere Memorandum of Understanding, always contact your lawyer.

References:

See the decision of Supreme Court in the case of BPS CONSTRUCTION & ENGINEERING COMPANY LIMITED v. FEDERAL CAPITAL DEVELOPMENT AUTHORITY (2017) LPELR-42516(SC).

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Onyekachi Umah, Esq., LL.M, ACIArb(UK)

Onyekachi Umah is an exceptional Legal Practitioner, Arbitrator, Notary Public and Legal Awareness Expert with over a decade of experience in civil law, criminal law and human rights. He holds a Master of Laws; a Master of Business Administration (mini) and he is a doctoral candidate. Mr Umah is the Managing Partner of the law firm of Bezaleel Chambers International (BCI), where he consults and provides legal services to several national and international organisations, including the United Nations. Aside from his very engaging legal practice, Mr Umah runs a legal awareness organisation (Sabi Law Foundation) and he diligently publishes free daily law tips, every day on www.LearnNigerianLaws.com since 2017. He has published over 820 legal articles in diverse areas of law, delivered over 35 public lectures, anchored over 67 law radio/tv shows and supported several legal and developmental projects across Africa. Click to read more.

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**************************************************************************************** This work is published under the free legal awareness project of Sabi Law Foundation (www.SabiLaw.org) funded by the law firm of Bezaleel Chambers International (www.BezaleelChambers.com). The writer was not paid or charged any publishing fee. You too can support the legal awareness projects and programs of Sabi Law Foundation by donating to us. Donate here and get our unique appreciation certificate or memento. DISCLAIMER: This publication is not a piece of legal advice. The opinion expressed in this publication is that of the author(s) and not necessarily the opinion of our organisation, staff and partners. PROJECTS: Take short courses, get samples/precedents and learn your rights at www.SabiLaw.org Publish your legal articles for FREE by sending to: eve@sabilaw.org Receive our free Daily Law Tips & other publications via our website and social media accounts or join our free whatsapp group: Daily Law Tips Group 5 KEEP IN TOUCH: Get updates on all the free legal awareness projects of Sabi Law (#SabiLaw) and its partners, via: YouTube: SabiLaw Twitter: @Sabi_Law Facebook page: SabiLaw Instagram: @SabiLaw.org_ WhatsApp Group: Free Daily Law Tips Group 5 Telegram Group: Free Daily Law Tips Group Facebook group: SabiLaw Email: lisa@sabilaw.org Website: www.SabiLaw.org ABOUT US & OUR PARTNERS: This publication is the initiative of the Sabi Law Foundation (www.SabiLaw.org) funded by the law firm of Bezaleel Chambers International (www.BezaleelChambers.com). Sabi Law Foundation is a Not-For-Profit and Non-Governmental Legal Awareness Organization based in Nigeria. It is the first of its kind and has been promoting free legal awareness since 2010. DONATION & SPONSORSHIP: As a registered not-for-profit and non-governmental organisation, Sabi Law Foundation relies on donations and sponsorships to promote free legal awareness across Nigeria and the world. With a vast followership across the globe, your donations will assist us to increase legal awareness, improve access to justice, reduce common legal disputes and crimes in Nigeria. Make your donations to us here or contact us for sponsorship and partnership, via: lisa@SabiLaw.org or +234 903 913 1200. ***********************************************************************************

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Memorandum Of Understanding Is Not A Binding Contract

Onyekachi Umah, Esq., LL.M, ACIArb(UK)

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