Movie Case Study
The scene that you see above shows Bholi (played by Richa Chadha) making a plan to open a lottery company. She mentions that people who invest will get a stamp paper of Rs. 100 and an MOU would be signed.
In this blog, learning perspectives explores the meaning of MOU.
What is MOU?
MOU or memorandum of Understanding is a letter of intent. This memorandum of understanding declares that the two parties have reached a decision. Generally, no stamp duty is paid on MOU. Stamp duty paid document can be evidenced in court. Although, in the scene that we saw, it would have been better if she wouldn’t mention stamp duty. As the company’s foundation isn’t very strong.
MOU is formed on the basis of a discussion between two parties and later a formal contract is drafted. MOU is based on the intent of both parties.
Contents of MOU:
- Purpose of MOU
- Responsibilities of each Party
- Financial Support
- Financial Consideration
- Management Spoc
- Duration of MOU
- Confidentiality Clause
- Termination Conditions
- Arbitration Clause
- Indemnity Clause
MOU should clearly mention the names of both parties, the capital contribution made by both parties, and the one maintaining the financial records.
Real-Life Example
Above is a snapshot of the MOU between the Ministry of Culture and the National School of Drama. This MOU clearly mentions the following:
- Purpose
- Budget/Accounts
- Human resource
- Legal Matters
- Parliament Matters
- General and
- Specific Issues
- Financial Consideration
This one-hundred-and-fifty-page MOU clearly shows the budgetary allocation of funds by the ministry of the National School of Drama.
You can find the MOUs of the Ministry of Culture here.
