THAT MOU MAY NOT BE LEGALLY ENFORCEABLE

THAT MOU MAY NOT BE LEGALLY ENFORCEABLE

In Nigeria, a Memorandum of Understanding (MoU) is generally not a binding or enforceable document.

An MoU only has legal value if it clearly shows an intention by the parties to create legal obligations.

Without that, it is nothing but a record of discussions, hopes, wishes or future plans.

Many persons/businesses sign an MoU, exchange money, start performance, believing they are legally protected. Then a dispute arises and they are shocked.

An MoU is ordinarily a gentleman’s agreement or a preliminary understanding. It is an agreement to make a Contract later.

If the MoU lacks definite terms, mutual obligations, exchange of value and unmistakable language showing legal intent, it will fail.

In Nigeria, although an MoU is generally not binding, the Supreme Court of Nigeria has held that where one party relies on its terms and acts on it, the other party cannot deny legal responsibility if he accepted the reliance.

In such cases, the court will infer intention from conduct and enforce the obligations to prevent injustice.

So if you want your MoU to be enforceable, treat it like a proper contract. Spell out the rights and duties of each party. State what each party must do, when and how. Include consequences for breach.

In law, substance defeats labels. Calling a document an MoU will not matter, and calling an MoU a contract will not fix it.

If your MoU does not show that intention, it has no legal value.

Get a good Lawyer.

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APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)
Email: info@apexchambersglobal.com
Website: www.apexchambersglobal.com.