A Memorandum Of Understanding(MOU) is an explicit agreement between two or more parties. Normally, Registration of Mou is not used as a legal term or term of the agreement, but they carry a degree indicating seriousness and mutual respect, stronger than any gentleman’s agreement. In many cases, an MOU precedes a contract. There are very few MOUs that are enforceable, these are in general MOU, international MOU, and MOU between countries. Each part is legally binding, and the other isn’t. MOUs are used in international treaties, so they should be registered. A registration of Mou between two countries is legally enforceable and used for resource exchange.

MOUs mean:

Memorandums of Understanding, also known as MOUs, are formal contracts involving at least two parties. Those two parties can be individuals, states, or even countries. Memorandums of understanding are not legally binding, but they carry a seriousness, mutual respect, and trust that makes them stronger than any other nonbinding agreement.

Indian law and Mou:

Indian contract law, 1872, lays down the principles on which contract law is based. As per the Indian Contract Act, 1872 section 10 gives the rule on how to become a legal contract. Indian law says that a contract can only be construed as one if it is made with the free consent of competent parties, for a lawful consideration, and with a lawful object, and is not expressly declared to be null and void. A contract can be described in a very simple way as the willingness of the parties to enter into a legal agreement as the result is the creation of a legal agreement. Likewise, the hand MOU includes some obligations and liabilities for the parties with the consent of the parties that can be proved that both parties intend to enter into a binding contract at any time if any party wants to breach the contract.

When MOU can be registered:

LUCAN records memoranda of understanding under the Indian contract act 1872.  A memorandum of understanding in India drafted at that time maintained all the legal enforceable elements required for a contract to be enforceable. Included are:

1. The parties should both intend to form a legal relationship.
2. The offer and acceptance must be there.
3. Each party must consider the other.
4. The legal capacity of both parties should be major.
5. It should be genuine consent given by the parties.
6. The contract’s objective should be legal.
7. Mention the duration of time.

MOUs in court:

The MOU may be challenged in court if it fulfills the legal contractual obligations. Then it is a legally enforceable agreement under the Indian contract law. In such kind of MOU if there is an If one party breaches the contract for financial consideration, another party can challenge the MOU under the specific relief act 1963. A person’s civil and contractual rights are protected and remedies for violations are provided under the specific relief act of 1963. A clause of dispute resolution in an MOU requires the parties to perform all their obligations. As a matter of good faith, if a dispute arises in the future, the dispute will be resolved in a friendly manner and in good faith. Court proceedings can be brought if the breaching party refuses to obey the clause.

Conclusion:

When established as a legal document, MOUs must satisfy all essentials, which can be enforced by the Indian Contract Act 1872, section 10. An MOU must have more than one party. According to its terms, MOUs may be registered under the Indian contract act or the law applicable in India. A Registration of Mou that has all contractual obligations is legally enforceable. If they violate it, the parties can take it to court.