How To Create A Memorandum of Agreement For Your Business

memorandum of agreement

Whenever you enter into an agreement with someone, it’s always a good practice to have a memorandum of agreement in place. This is why it’s best to learn how to write memorandum of agreement as it can come in handy someday. 

If this is something you are trying to learn, you’ve come to the right place. We’ve got a step-by-step guide on how you can create one plus access to a free template at the end. 

memorandum of agreement

What is a Memorandum of Agreement?

Before anything, let’s discuss what a memorandum of agreement is. 

Basically, a memorandum of agreement (MOA) is a legal and enforceable document that describes the business partnership between two individuals. As the name states, these two parties have agreed to cooperate on an objective and complete a project. 

Even though an MOA is a legal document, it is not as formal as a contract would be. But at the same time, it is more formal compared to a verbal agreement. Some instances when an MOA can be used include the following:

  • Service contract
  • Business partnership
  • Joint venture agreement
  • Employment contract

It’s important to know that an MOA is not the same as a memorandum of understanding (MOU). In the latter, the document simply describes the point of view of each party about a project before they decide to work together. 

How To Write A Memorandum of Agreement

Here is a step-by-step process of how to create memorandum of agreement:

Define the parties

First things first, who are the parties involved? Make sure to jot down the names of the individuals who will be signing the MOA and those who will closely be working together. 

Draft the agreement

When it comes to drafting memorandum of agreements, remember to pick just one person who can create the agreement without any issues. The document needs to be precise. So if you have too many people working on its draft, it could encounter some technicalities. 

memorandum of agreement

Send for review

Before the agreement gets finalized, each party needs to review the MOA to see if it is equally beneficial to both. Having the document for review gives the two parties an understanding of what their expectations are. 

When sending a copy of the agreement, you should include a sign-off sheet. This is particularly true if there are multiple individuals involved in reviewing it. As a result, you know that everyone was able to see and review the MOA before actually signing it.

Finalize the agreement

After the document gets reviewed, you will need to finalize it, especially if there are some changes, notes, or additions that have been incorporated into the final draft. It’s important that you determine who will sign the MOA so you can allocate the responsibility to this person.

Signing the agreement

Once everything has been clarified and both parties are happy with the document, the final stage is to have it signed. Everyone responsible will need to meet the objectives to sign the agreement. 

It’s also a good practice to have photocopied records for all signatories in the document or use an online signature tool for convenience.

When you’re writing a memorandum of agreement, you need to make sure that it has been understood by everyone involved in the document. This is why it is best to use simple and easy-to-understand language. 

Free Memorandum of Agreement Template

One of the good things about the process of memorandum of agreement creation is that you no longer have to do it from scratch. There are now various MOA templates available that you can easily customize according to what you need. 

You can check out this memorandum of agreement template so you can save time and energy when writing memorandum of agreement. 

Memorandum of Agreement

Essential Elements of Memorandum of Agreement

Since a memorandum of agreement is not as formal as a contract, there are some sections that need to be included in the document. These include the following:

  • Purpose of the agreement – Identify what the purpose of the agreement is. Give a reason for the partnership or collaboration.
  • Scope of work – Provide a detailed outline of the roles and responsibilities of each party. Include their tasks, deliverables, and services to provide.
  • Duration of the agreement – Include a duration of the agreement, such as its start and end dates. You can also include the termination conditions in this section.
  • Payment agreement – The details about the payment terms, amounts, and schedule should be included in the agreement.
  • Dispute resolution – There should also be a section for the procedures for dispute resolution if they arise during the agreement.

Remember, this document may be legally binding, so make sure you prepare it in a detailed manner. 

How Fill Can Help Write a Memorandum of Agreement

These days, you don’t even need to learn how to draft memorandum of agreement from scratch. Fill is a website that offers a customizable template. It also allows you to collaborate remotely and sign documents on the go.

Check out Fill’s memorandum of agreement template here to see how you can save time and energy in writing the information required. Sign up for a free account to see what’s in store for you when you start using our templates.

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