THAT MoU MAY NOT BE LEGALLY ENFORCEABLE

THAT MoU MAY NOT BE LEGALLY ENFORCEABLE

You sIgned an MoU, shook hands and felt safe. Beware. In Nigeria, legally, most Memoranda of Understanding (MoU) are not worth more than the paper they are printed on.

Yes, that is the general rule. The Supreme Court of Nigeria has consistently held that an MoU is not legally enforceable when it merely outlines intentions or serves as a preliminary agreement. If it doesn’t include a clear intent to create legal relations, forget it.

The courts are not being harsh; they are simply upholding the principles of law of contract. An MoU that reads like a gentleman’s agreement, filled with vague language or phrases like “subject to contract” is legally toothless.

No offer. No acceptance. No consideration. No intention to be legally bound. No enforcement.

But not all MoUs are powerless. If your MoU contains clear terms, shows mutual obligations pointing  to the fact that the parties intend to be bound, it may be upheld. In such cases, the court looks beyond the title (form) and focuses on the content (substance).

So be careful, very careful, when drafting an MoU. Don’t assume it is just a casual document. It could either fail you when it matters most or bind you more than you ever intended.

If you want it to stand the enforceability test, treat it like a contract. If you don’t, make that crystal clear. Always draft with precision or you risk unpleasant surprises.
_
APEX CHAMBERS, top Business/Corporate /Commercial and Property/Real Estate Lawyers, Attorneys , Barristers, Solicitors, Advocates Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Nigeria

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