Can a Memorandum of Understanding be legally binding?

Yes - MOUs can be binding if signed by both parties and the language does not specifically call out that it's subject to a future document and/or that it is NOT legally binding on the parties. You will need to review the agreement carefully to see what language says.

You've identified several of the key items to include - project scope, responsibilities, timelines, confidentiality, and dispute resolution. You also want to outline how ownership of the project will be split, and how profits/revenues will be split. Will you be forming an LLC to carry out the project? What will each party be contributing to the project - money? equipment? expertise? facilities? The MOU will be a solid working outline for then preparing a definitive, binding agreement - this could be a partnership agreement, a joint venture agreement, an LLC operating agreement, or something of that nature.

You may use a Memorandum of Understanding when you want a written agreement that is less formal than a contract yet still outlines the terms of your partnership. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.

You will need a consulting agreement and terms and conditions to start. Depending on your business, you may need more agreements. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.

There are clauses that you can put in contracts to incentivize key people to stay in the company.