MEMORANDUM OF UNDERSTANDING TEMPLATE

 

PandaTip: A memorandum of understanding doesn’t typically form any legal obligations for the parties involved. It is like a formalized handshake or a method of documenting good faith negotiations or certain agreements expected in an agreement currently being worked out by the parties.  This memorandum of understanding assumes a future reseller or product distribution agreement.

This Memorandum of Understanding (this “Memorandum of Understanding” or this “MOU”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”), by and between [RESELLER] (“Reseller”), with an address at [RESELLER ADDRESS], and [COMPANY] (“Company”), with an address at [COMPANY ADDRESS]. This Memorandum of Understanding sets forth the understanding of the parties related to Company’s appointment of Reseller, and this Memorandum of Understanding shall expire upon the earlier of [NUMBER OF MONTHS] months following the Effective Date, unless it is extended by written modification, or a written successor agreement pertaining to the subject matter of this MOU.

WHEREAS, in connection with the establishment of a business relationship between the parties whereby Reseller would sell Company products in [TERRITORY] (the “Territory”), and the parties negotiation of a reseller agreement, the parties wish to set forth their current understanding and certain agreements made to date with respect to such relationship.

  1. BACKGROUND.  Company is the owner of the following products (the “Products”), which it desires for Reseller to resell in the Territory:

PandaTip: You can describe the products in this space or refer to a product catalog, if you have one.

  1. PURPOSE.  The purpose of this MOU is to set forth certain understandings of the parties in relation to the terms and conditions to be agreed between Company and Reseller in a reseller agreement.

  1. UNDERSTANDINGS.  The parties set forth their understandings under this MOU with respect to the reseller agreement as follows:

PandaTip: It goes without saying that the below terms assume a specific arrangement which in many cases may be different from your specific arrangement. Tailor as appropriate.

IN WITNESS WHEREOF, by their signatures below, the parties have caused this Memorandum of Understanding to be executed and effective as of the Effective Date.

 

[COMPANY]

___________________________        ______________

[NAME], [TITLE]                                    DATE

[RESELLER]

___________________________       ______________

[NAME], [TITLE]                                    DATE

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