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Understanding and Writing Contracts and Memoranda of Agreement

Understanding and Writing Contracts and Memoranda of Agreement. What are contracts and memoranda of agreement?. Contract It is a statement of an agreement between or among two or more parties that involves an "exchange of value."

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Understanding and Writing Contracts and Memoranda of Agreement

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  1. Understanding and Writing Contracts and Memoranda of Agreement

  2. What are contracts and memoranda of agreement? • ContractIt is a statement of an agreement between or among two or more parties that involves an "exchange of value." • Memorandum of agreementIt is not a legal document, but the signers are showing that they don't intend to try to enforce its terms. • Gray areasIf one party takes a lossIf a particular exchange has become customary

  3. When might you use each document? • Use a contract or subcontract: • Whenever money is involved. • Situations involving a non-money exchange • Use a memorandum of agreement: • To define a relationship between organizations • To agree to affiliate in a particular way • To agree to share something • To agree to work together in specific ways

  4. How do you read and understand a contract? • Reading a contract • Read every word carefully • Become familiar with standard clauses and phrasing • Ask for clarification or help • Be sure you agree with all the conditions of the contract before you sign it • Don't be afraid to raise questions before you sign

  5. How do you read and understand a memorandum of agreement? • Read every word carefully • Ask for clarification or help • Be sure you agree with all the conditions of the memorandum of agreement before you sign it. • Raise any questions before you sign

  6. How do you draft a contract? • Explain who the parties to the contract are, and the time period that the contract covers • Explain as specifically as possible every aspect of the contract: what, who, how, when and where • If there's money involved, explain the details of payment • Explain any other obligations of each party • Explain how the contractor's performance will be evaluated • Explain the consequences if either party fails to deliver on what it has agreed to • Explain the conditions under which the contract can be ended or "terminated " • Explain the conditions under which the contract can be changed or "amended " • When you've finished, show the contract to others to review your intentions and specifications • Finally, give the contract to the contractor, and be prepared to negotiate some parts of it.

  7. How do you draft a memorandum of agreement? • The more everything is spelled out, the less confusion about what you're agreeing to. • Being specific helps to avoid misunderstandings, which can escalate into bad feelings and enmity where there was originally trust and collaboration. • Clarity in an agreement provides an outline for your work or activity. • A clear agreement reflects the clarity of everyone's expectations.

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