Home → University Services → Legal → Frequently Asked Questions → What is a Memorandum of Understanding?

What is a Memorandum of Understanding?

A MEMORANDUM OF UNDERSTANDING, which may also be called “an agreement in principle” or “a letter of intent” is an instrument which signifies an intention to negotiate a contract in the future. It is not intended to be a legally binding document. It is important to include a specific clause in the document which negates any intention to create a binding relationship, for example, this document is a Memorandum of Understanding and is not intended to create binding or legal obligations on either party. An example of a Memorandum of Understanding suitable for use by the University follows:

THIS MEMORANDUM is made on the ……………………. day of …………………….………………..2003

1. PREAMBLE

1.1 Recognising the mutual benefits to be gained through a co-operative program promoting scholarly activities and international understanding, The University of Newcastle of University Drive, Callaghan, New South Wales, Australia [“Newcastle”] and [Party B]” of [address] (“Party B”) enter into this Memorandum of Understanding and agree to the following:

2. PURPOSE

2.1 The purpose of this Memorandum is to facilitate and promote cooperation between Newcastle and [Party B] by [describe program or activity to be undertaken]

3. FURTHER AGREEMENTS

3.1 This document is a Memorandum of Understanding and is not intended to create binding or legal obligations on either party. The specific details of any matter will be set forth in agreements supplemental to this Memorandum.

3.2 The supplemental agreements shall set out detail the responsibilities of each party in respect of:

[selection and enrolment requirements];
(b) [tuition fees and other financial considerations];
(c) [accommodation and other services for students]; and
(d) any other terms and conditions necessary for the achievement of the
proposal.

4. FINANCIAL CONSIDERATIONS

4.1 The parties acknowledge that all or any financial arrangements proposed must be negotiated and will depend upon the availability of funds.

5. TERM OF MEMORANDUM

5.1 This Memorandum shall commence on the date hereinbefore written and shall continue for a period of three years.

5.2 This Memorandum may be terminated by either party giving the other party three months notice in writing.

5.3 This Memorandum may be amended or varied from time to time provide that such amendment or variation is evidenced in writing and signed by the parties.

The Memorandum should be executed for the University by the Vice-Chancellor.