A Memorandum of Agreement (MOA) is a written document describing a cooperative relationship between two parties wishing to work together on a project or to meet an agreed-upon objective. An MOA serves as a legal document and describes the terms and details of the partnership agreement. It is more formal than a verbal agreement but less formal than a contract. Organizations can use an MOA to establish and outline collaborative agreements, including service partnerships or agreements to provide technical assistance and training. An MOA may be used regardless of whether or not money will be exchanged as part of the agreement.
Definition: A Memorandum of Agreement (MOA) is a written document between multiple parties on a project detailing how they will work together to achieve agreed-upon goals and objectives.
A Memorandum of Agreement (MOA) is a type of contract enforceable by law. When two parties sign a MOA, it is a formal agreement about what each party can expect from the other. It has agreed-upon goals and a risk assignment.
A Memorandum of Understanding (MOU) is used for simple common-cause agreements which are not legally binding. MOAs, on the other hand, establish common legal terms that establish a “conditional agreement” where the transfer of funds for services is anticipated.
A MOU defines a “general area of understanding” within both parties’ authorities, and no transfer of funds for services is anticipated. MOUs often state common goals and nothing more. Thus, MOUs do not contemplate funds transfers and should usually include language that states something similar to: “This is not a fund’s obligating document; by signing this agreement, the parties are not bound to take any action or fund any initiative.” An MOU may be used to outline the operation of a program so that it functions a certain way.
Two agencies with similar goals may agree to use an MOU to solve a problem or support each other’s activities. The MOU is a formalized handshake, not a legally binding document.