You must have heard about the terms agreement, contracts and MOU. Do you know about the difference between MOU and contract? How about agreement?
Check this article to know more about these terms.
Differences Between Agreement, Contract, and MOU
You must understand that in the business world there are terms of agreements, contracts and MOUs. However, in these 3 terms there are differences that you should know. Differences in contracts and agreements, as well as the MOU.
These are the differences between the MOU and contracts and agreements, including the following:
- Agreement
An agreement is an act that is carried out by one or more people which binds itself to one or more people. In article 1313 of the Indonesian Civil Code, it can be concluded that an agreement is an act that has legal consequences in the form of rights and obligations.
- Contract
A contract is an agreement that is made in writing because an agreement can also be made orally. The term contract comes from English and is commonly used in business, because in business people rarely enter into verbal agreements.
- MOU
MOU stands for memorandum of understanding is a pre-contract. What is a pre-contract?
A pre-contract is an initial agreement made by the parties involved before executing the actual contract. This MOU was generally carried out after negotiating, but because the parties were not ready to sign a contract, an MoU was drawn up as an initial bond. In short, the MoU is the minutes of a negotiation.
Don’t get confused about 3 business terms, because here there is an explanation of the differences between the MOU and the contract, and the agreement.
Signing of the MOU
After discussing the differences in the MOU, agreements, and contracts. Does this MOU require a stamped signature? Maybe some people still wonder about signing.
In this case, stamp will not affect the validity of an agreement. Article 1320 BW does not require a written agreement. So if an underhanded agreement / deed is written without a stamp, the agreement is still valid and binding before the law. Since stamp is a product and source of state revenue, stamp duty is only an absolute requirement if the agreement is brought before the state as evidence, such as before a court. But there is no need to worry if your agreement is not stamped. You only need to pay a fine in the form of reseal in court at a price of 300% of the stamp fee that should be affixed.
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