MoU vs Agreement – What’s the Real Legal Difference?” π€·♂️⚖️π
π¨️ Client Question:
"We signed an MoU with a vendor. Is it legally binding like an agreement?"
π Answer:
That’s like comparing a crush (MoU) with a marriage (Agreement)! ππ
An MoU (Memorandum of Understanding) is usually a non-binding document showing mutual intent, while an Agreement is a legally enforceable contract under the Indian Contract Act, 1872.
✅ Key Differences:
- MoU = Intent only
- Agreement = Legal rights & duties
- MoUs may or may not be used in court
- Agreements = Full legal protection!
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⚠️ When to Use What:
π MoU – For early-stage talks or partnerships
π Agreement – For finalised terms, money, deliverables & legal obligations
π‘ Why This Matters:
✔ Avoid legal confusion
✔ Know what you’re signing
✔ Prevent future disputes
✔ Build strong legal foundations
π€£ Pro Tip:
Don’t treat a handshake letter like a court shield! π«±π€π‘️
π’ Need help drafting the right legal document?
π LEXIS AND COMPANY is here to guide you—MoU, Agreements, Contracts & more!
π Call: +91-9051112233
π Website: https://www.lexcliq.com
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