Preview · page 1NPOs, schools, small businesses and partners starting a project together
Memorandum of Understanding (MOU)
Record what two parties plan to do together before a full contract: goals, roles, costs and which clauses bind.
Quick answer
A memorandum of understanding (mou) is a written agreement used by npos, schools, small businesses and partners starting a project together in South Africa. This template covers purpose and shared goals, each party's roles, costs and funding, duration and review and more, drafted with POPIA, the CPA and the ECT Act in mind.
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What's inside
- 01Purpose and shared goals
- 02Each party's roles
- 03Costs and funding
- 04Duration and review
- 05Which clauses are binding (confidentiality, costs, termination)
- 06Not a partnership
- 07POPIA clause
Good to know
Is an MOU legally binding in South Africa?+
It depends on the wording. An MOU that says it's non-binding usually isn't, but clauses stated as binding (such as confidentiality) can be enforced.
When should I use a contract instead of an MOU?+
Once money, deliverables or deadlines are fixed. Then sign a full agreement, such as a service or partnership agreement.
What is an MOU in South Africa?+
A memorandum of understanding is a written record of what two or more parties intend to do together, usually before a full contract.
Is an MOU enforceable in court?+
Only the parts that are clearly intended to be binding. Courts look at the wording and the parties' intention.
What's the difference between an MOU and an agreement?+
An agreement creates binding obligations; an MOU usually records intentions and plans, with only some clauses binding.
Is this legal advice?+
No. It's a professionally structured starting point. For high-value or unusual deals, have an attorney review your completed document.
