Overview
A Memorandum of Understanding records what parties have agreed in principle before a definitive contract is signed — useful for partnerships, pilot arrangements and early-stage collaborations. We draft MoUs that are clear about what is, and is not, binding, so expectations are aligned from the outset.
For ongoing commercial relationships, we also draft the underlying business agreements — vendor, service, distribution and partnership contracts — in plain language that protects your position without unnecessary complexity.
What's included
- MoU drafting & review
- Vendor & service agreements
- Partnership & distribution contracts
- Negotiation support
How we approach it
Frequently asked questions
Is an MoU legally binding?
It depends on the wording — some clauses, like confidentiality, are usually binding while the main commercial terms may be non-binding until a full agreement is signed. We make this explicit in drafting.
When should we move from MoU to a full agreement?
As soon as the arrangement becomes operational or money changes hands — an MoU is a starting point, not a substitute for a contract.
Can you draft agreements for an ongoing vendor relationship?
Yes — service, supply and distribution agreements are part of our regular drafting work.
Can an MoU be used to secure exclusivity while negotiating a deal?
Yes, an exclusivity or 'no-shop' clause can be made explicitly binding within an otherwise non-binding MoU, if that's what the parties intend.
What's the risk of operating under an MoU for too long?
Ambiguity — if money changes hands or obligations are performed without a definitive agreement, disputes become harder to resolve since key commercial terms were never finalised.
Do vendor and service agreements need to be renewed annually?
It depends on the term specified in the agreement; we can build in auto-renewal, fixed terms, or notice-based termination based on what suits the relationship.
Talk to us about MoUs & Business Agreements.
Rashmi K.S. & Associates · Practising Company Secretaries · Balewadi, Pune