When to Use Memorandum of Agreement


As a business owner or legal professional, you may have asked yourself when it`s appropriate to use a memorandum of agreement (MOA). An MOA is a legal document that outlines the terms and conditions of a transaction or partnership between two parties. It`s an important tool for ensuring that both parties are on the same page and that the agreement is legally binding. In this article, we`ll explore when to use an MOA and what to include in one.

When to Use an MOA

1. Partnership Agreements: When two or more parties come together to form a business partnership, it`s important to have an MOA in place. This document outlines the responsibilities and obligations of each party, the terms of the partnership, and the process for resolving disputes.

2. Service Contracts: When you hire a service provider, such as a freelancer or consultant, an MOA can be used to outline the terms of the agreement. It can include details such as the scope of work, payment terms, and deadlines.

3. Real Estate Transactions: When buying or selling property, an MOA can be used to outline the terms of the transaction. It can include details such as the purchase price, closing date, and any contingencies.

4. Employment Agreements: When hiring an employee, an MOA can be used to outline the terms of the employment agreement. It can include details such as job duties, compensation, and benefits.

What to Include in an MOA

1. Purpose: The first section of the MOA should outline the purpose of the agreement. This section should clearly state the reason for the partnership or transaction.

2. Parties Involved: The MOA should clearly state the parties involved in the agreement. This includes the legal names of the individuals or businesses that are entering into the agreement.

3. Terms and Conditions: The MOA should outline the terms and conditions of the agreement. This includes details such as the scope of work or services, payment terms, and deadlines.

4. Confidentiality: If the agreement involves sensitive information, a confidentiality clause should be included. This will protect both parties from any unauthorized disclosure of information.

5. Dispute Resolution: The MOA should include a section on dispute resolution. This section should outline the process for resolving any disagreements between the parties.


An MOA is an important tool for formalizing a partnership or transaction. It provides a clear outline of the terms and conditions, ensuring that both parties are on the same page. Use an MOA when entering into a business partnership, service contract, real estate transaction, or employment agreement. Be sure to include the purpose of the agreement, the parties involved, the terms and conditions, confidentiality, and dispute resolution. With an MOA in place, you can have the peace of mind that your agreement is legally binding and that both parties are protected.