This may be as minor a problem as changing a budget item (for which you may already have a procedure in the contract – see above) or changing all the content of the activity that is covered by the treaty. In general, such changes should require the agreement of both parties and some negotiations are likely to take place. For example, when an organization agreed, at the request of a funder, to act as a pass for another organization that had not yet received a tax-exempt federal filing. The first organization would simply ask the funder for money at reasonable intervals and transfer it to the second. In such a situation, it is advisable to design and sign a Memorandum of Understanding outlining precisely how this agreement works. Although these definitions seem quite clear, there are a number of situations where the image becomes blurred. For example, when a Memorandum of Understanding involves an exchange for a sum of money, it is almost always considered a contract under the law. In addition, there are two other legal conditions in which a Memorandum of Understanding or no formal agreement can be treated as a treaty. If you need to «receive it in writing,» the options are usually a contract or memorandum of understanding.
The objective of a Memorandum of Understanding could be to show the goodwill of both parties or to help them keep an overview of what they have agreed. The agreement can help to clarify the relationship between two organisations and to clarify the services for which each is responsible in the Community. If you can follow these guidelines, your contracts or agreements – whether you write them down or those who sign them – have a great chance of getting the results you hope for. Most contracts contain a clause that explains why each party can decide to terminate the contract for no particular reason with a certain termination period, usually 30 days. In addition, there are often conditions under which either party may terminate the contract immediately or almost immediately for certain reasons. This generally includes non-compliance with the terms of the contract, improper expenditure of money, incapacity or non-payment on the part of the funder, and similar circumstances that would prevent the performance of the contract. If you do not agree with any of the terms of the agreement or if you have any questions or problems with it, ask them before signing. The development of a memorandum is generally much easier than the development of a treaty, as is the case with the reading of a memorandum.