Memorandum of Understanding（MOU）

Description

• A Memorandum of Understanding (MOU) is a formal document that outlines the preliminary terms and understanding between two or more parties. It serves as a non-binding agreement to establish mutual intentions and framework for future collaboration or partnership.

GOV Department

• (Depends on the nature of the agreement, e.g., Suruhanjaya Syarikat Malaysia (SSM) or Ministry of Domestic Trade and Consumer Affairs (KPDN).

License Name (Malay)

• Memorandum Persefahaman (MOU)

Details

• Defines the objectives and scope of the proposed collaboration between parties.
• Details roles, responsibilities, and contributions of each party.
• Includes provisions for confidentiality, timelines, and dispute resolution mechanisms.
• Serves as a basis for drafting a formal contract or agreement.
• Non-binding unless explicitly stated otherwise in the document.

Important Rules

• The MOU must clearly outline the mutual understanding and intentions of all parties.
• It must include clauses for confidentiality and exclusivity (if applicable).
• All parties must agree on the terms and sign the document to validate the understanding.
• The MOU should comply with applicable Malaysian laws, such as the Contracts Act 1950, if intended to be legally binding.
• If formalized into a binding contract later, the MOU must align with the final agreement.

Compound & Punishment

• Breach of a binding clause within an MOU (if any) may result in:
  • Legal action for compensation or enforcement under applicable laws.
• Misrepresentation or failure to act in good faith may lead to:
  • Disputes or dissolution of the proposed collaboration.
  • Reputational damage and potential loss of business opportunities.

Advisor