Advantages of MOU
1. Curtails the Risk of Uncertainty: It clearly defines each party’s goals and objectives and removes any risk of uncertainty in understanding the goals of the parties. Both parties will have a proper understanding of the objectives and goals of the MOU.
2. Written Document: It is a written document that has the signature of both parties, so they are obligated towards their duty mentioned in the same. It also ensures that no parties forget what they have agreed upon and what is their obligation towards the MOU.
3. Ease in Exit: It is very easy for the parties to take an exit from the MOU if they find that they are unable to perform the tasks written in the MOU. It is an initial step for a future agreement, so if the party finds out, initially that they are unable to perform the duties mentioned in it, then it is easier for them to take an exit from the MOU without any further delay.
5. Foundation: It acts as the base for any future agreement between the parties. By the MOU, parties have already finalised their initial negotiation, so they can further negotiate or move forward with the agreement based on the terms agreed in the MOU.