If either of the parties is an individual, the party should sign and have the document attested to by at least one witness. If a party is a company, either two (2) directors or one (1) director and one (1) company secretary should sign the document and the common seal of the company may be affixed on the document. It can be used in cases where parties either do not imply a legal commitment or where the parties can not create a legally enforceable agreement.Īfter filling this form, all the parties must sign the document. This is the stage where parties are deliberating on the fundamental terms of the project. This document can be used at a contract negotiation stage between parties. Overall, an MOU can either legally binding or not depending on how the MOU is drafted and whether all the elements of a contract are present in the MOU. It means that all the parties to the MOU intend to be bound by the MOU. The consideration is the benefit, such as money or other money's worth bargained for by the parties to this MOU. This is when all the parties accept all the terms and conditions of the MOU. An offer occurs when the parties proffer something (for example, a business arrangement) to another. It will also be legally binding if there are all the elements of the contract, such as offer, acceptance, consideration, and intention to create a legal relationship, as described below: On the other hand, the MOU can be legally binding if the parties have a completed bargain that has been settled by all the parties to the MOU. However, it indicates an intended common line of action. Ordinarily, the MOU is not legally binding, which means that parties are not obliged to comply with the provisions of the agreement. This document describes the parties, the project or transaction, the purpose of the MOU, general obligations of the parties, and the precise roles and responsibilities of the parties. This is the first stage of the formation of a formal contract. Therefore, the Agent shall be responsible for any federal and local taxes due on any commissions paid from this Agreement.A Memorandum of Understanding, also known as MOU, is an agreement between two or more parties outlining the terms and conditions of an intended transaction. This Agreement does not serve as employment of the Agent by the Seller. The Agent shall, for the term of this Real Estate Agency Agreement, be considered an independent contractor. The Agent shall be responsible for all personal and travel expenses incurred during the execution of this Agreement, including any additional broker fees necessary to complete the sale. In the event the Seller should decide not to sell the property prior to this Agreement’s terms ending, and the Seller is offered a bona fide or market value price from a buyer which they decline, the Agent shall be owed a total fixed price of no more than (insert amount or percentage of listing price) for their services. Once initiated, if this Real Estate Agency Agreement should terminate for any reason, any offers agreed upon by the Seller as a result of the Agent's services that result in the sale of the property at will entitle the Agent being paid (Commission.Percentage) percent. If the Seller should sell the property as a result of such offers before becomes involved as the listing Agent as of (Date), the Agent will not be entitled to a commission. The Seller is permitted to finalize any current property offers taking place regarding prior to this Real Estate Agency Agreement taking effect as of (Date). The Seller has agreed to pay the Agent a flat commission of (Commission.Percentage) percent of the final sale price.
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