What is a Memorandum of Understanding?
A Memorandum of Understanding or MOU is put in place to establish a clear understanding of how the deal will practically function and each party’s role and compensation. Mr. Elliott explains in Joint Adventures, “In the Memorandum of Understanding, simply set out the details of the deal, what everyone agrees to do and how and when everyone gets paid, what percentage, do you add taxes, etc. “Robin agrees to pay Adam 20% of all income Robin receives in payment of speaking engagements, after the deduction of GST (General Sales Tax) as a result of business generated by Adam. Robin agrees to pay Adam this 20% commission by check by regular mail, within ten days of Robin’s receiving his payment.” Something that simple. By working with trusted people, you have fewer concerns about not being paid. Put it in writing to avoid future misunderstandings. Pay on time. If you agree to be paid or to pay on all future business transactions, make sure you specify how long this agreement will last for, w
