his Memorandum of Understanding is for use between two or more Parties that are

interested in working together on a particular project. It is intended as a starting point for the
Parties, as it enables them to set out the preliminary understanding between one another,
and can help them to work towards a more formal agreement.

This Memorandum can be chosen to be legally binding or non binding. In the first case, the
Memorandum acts as a general agreement between the Parties which covers the broad
understanding of the Parties.Often, Parties may sign a Memorandum of Understanding outlining
some general agreement, and then will go away and make some further investigationsbefore
working out the finer details. If it is chosen to be non-binding, the Parties may not actually be
legally obliged to comply with it. This is because in many cases, Parties may not actually be
certain about the specific terms which they can agree to, but they still find it beneficial to put
something in writing, outlining some broader goals (such as the general nature of the project),
and confirming that they will act in good faith in pursuit of those goals.

Further, even in case of Memorandums which are non-binding, parties may choose to have
the obligations on confidentiality as binding since they may be sharing sensitive and
confidential information with the other parties in order to enable them to carry out further
investigations or due diligence before finalising all the details of the Project. In case the
Memorandum is non-binding, the parties may also choose to sign a seperate confidentiality
agreement which is binding.