Memorandum of Understanding versus contract/agreements

 

A question CFA’s legal team often receives from members is: “Should we be setting up a Memorandum of Understanding or should an Agreement be set in place?”

 

That is a great question.   

There are three factors that explain which document is the most appropriate for the arrangement CFA is entering: 

• Requirements and purpose
• Rights and obligations
• Enforceability and legal relationship

These points alone won’t answer your question. However, Legal Services has prepared a handy decision tree and matrix that will explain the differences between MOUs and Agreements in greater detail. In particular, the decision tree will help you to decide which document to use. 

The decision tree and matrix can be found here. 

There are also great resources available on the Legal Services page on Members Online with FAQs and information about how to obtain legal advice. This information is drawn from questions asked by members and is available for everyone to access. We encourage you to explore these resources.

If you still have a specific legal question, please submit a request through LawVu.

 

Submitted by	Kerrie Billings