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A Memorandum of Agreement (MoA) is one of the most often used legal terms in business. It is a written document that sets forth the terms, conditions, and purpose for which each party agrees to enter into a legal contract.
Companies use MoA for various legally binding commitments, such as service contracts, joint ventures, employment contracts, etc. The most common form of an MoA is between vendors and suppliers where there is a mutual agreement to exchange goods or services.
An MoA between two companies establishes the parameters of their future relationship and defines the obligations of the parties, terms of a loan agreement, roles and responsibilities, etc.
Tips for Drafting a Memorandum of Agreement
- Keep the wording of the document simple, clear, and concise
- Write the agreement in positive language.
- The document should be specific and address the who, what, when, and how questions.
- Conduct reality checks to ensure that the terms of the agreement are attainable and within the scope of authority.
- Review each item in the terms of the agreement carefully to ensure that each item is correct and appropriately captures each party’s intent.
How to Write a Memorandum of Agreement
Since drafting an MoA can be tricky, we present a content-ready template to navigate you through this process step-by-step.
Slide 1: Cover Page
Set the base for your contract by incorporating an impressive cover page. You need to ensure that the first glance is engaging and provides a sense of relevancy. This template illustrates a high-quality image of a handshake depicting the positive collaboration between the two parties.
Slide 2: Introduction for Memorandum of Agreement
An important step in drafting a memorandum of agreement is stating the purpose of the partnership. This slide outlines the consolidated overview of why and how all parties will work together. It highlights the context for collaboration and compliance; stating goals, objectives, and roles and responsibilities that the parties hope to achieve.
Slide 3: Collaboration Areas
The next step in writing an MoA is mentioning the background of the parties involved. It will enable you to give a brief description of the individual mission of the agencies involved in the collaboration. It also entails how the partnership will complement their respective goals.
Slide 4: Roles and Responsibilities
Defining roles and responsibilities is an important element in the memorandum of agreement.
This PPT page portrays a concise summary of how the partners will work together. It provides an insight into what their individual responsibilities are and offers clarity on the other partner’s contribution. The given aspect can benefit in improving communication and streamlining efforts for better decision-making.
Slide 5: Principal Contacts
Clearly stating the point of contact is vital for any memorandum of agreement. Imagine you need to convey an important message but you don’t know whom to contact? To save you from such confusion, this PowerPoint document showcases authorized contacts from each organization. It will ease the communication process, enable the smooth functioning of events, and allow the partners to accomplish common objectives.
Slide 6: Terms and Conditions
Defining the duration of the agreement is crucial when writing an MoA You can use this slide to put forward the significant dates related to the contract, such as starting date, duration of the contract, etc. This way you gain an understanding of how the activities in the collaboration would be moving along, and you can optimize your decisions and plan your next move. Here, you can also mention the circumstances under which the agreement can be modified or terminated.
Slide 7: Project Termination Details
To ensure everybody is on the same page, stating the criteria for project termination is integral. And this slide will help you with that. In this section, you can present the reasons that can lead to the termination of the partnership agreement. The reasons can vary from failing to meet the expectations to payment delays, untimed orders, etc. You can also emphasize the conditions under which the notice of termination will or won’t be applicable.
Slide 8: Funds
This slide is useful in describing each party’s fiscal duties, if any, ensuring that they are compatible with the stated goals and intended activities. It saves confusion, permitting both partners to focus on efficiency and avoiding any future dispute.
Slide 9: Dispute Resolution
Don’t forget to enlist the dispute resolution methods in your memorandum of agreement. In this slide, you can mention some solutions corresponding to specific disputes in case they arise in the future. It lets you discuss various techniques and ways to settle disagreements in a thoughtful manner. A well-designed dispute resolution section can certainly save your project from derailing.
Slide 10: Signatories
All the efforts go down the drain if the contract isn’t signed by both parties. So don’t forget the signatures. The given PPT slide brings all the efforts to fruition as it encompasses the signatory element to bring the contract into effect. This element is of utter importance as it ensures the consent of the parties involved.
Everyone involved in the deal should understand your agreement; therefore, it is essential to use a simple and easy-to-understand format, language, and design for your MoA. It should ensure a balance of expectations among the parties involved, so no one party shoulders more of the responsibilities.
Now that you know how to draft a solid Memorandum of Agreement, why not grab this content-ready template to help you save time and effort. It includes all the standard terms and conditions you can modify as per your requirement, and downloading it for your next contract can give you significant assistance.
If you want a customized MoA template for your firm, contact our Design Services team here.
P.S: If you are looking to rent out your property in a safer way, here’s an exclusive collection of rental agreement templates.
