MOU between India and Iceland 

MOU stands for Memorandum of Understanding. A memorandum of understanding is a formal document that contains an agreement between two or more parties. Though it is not legally binding, it indicates the intent of the parties to enter into a contract.

Often, the process starts with each side crafting their own best-case MOU. It evaluates its ideal or preferred conclusion, what it believes it can provide the other parties, and what issues on its side are non-negotiable. This is the starting point for discussions for each party.

According to a press release from PIB, the Union Cabinet, chaired by Prime Minister Narendra Modi, was informed of and approved a Memorandum of Understanding (MoU) inked between India and Iceland on the subject of Fisheries. The Memorandum of Understanding was signed on September 10, 2019.

The important features of this MoU are as follows:

1. Establishment of facilities for the interchange and placement of scientists and technical professionals, particularly in the areas of calculating Total Allowable Catches in off-shore and deep marine areas.
2. Training for fisheries professionals from key fisheries institutions in many management components of modern fisheries management and fish processing.
3. Scientific publications, study findings and other information are exchanged.
4. Experts/expertise is being exchanged in order to study fishing opportunities.
5. Processing and marketing of high seas fishery goods for entrepreneurship growth.

The MoU is expected to boost India’s already warm relations with Iceland, as well as to improve dialogue and cooperation on fisheries, including consultation on bilateral problems.

Advantages of a Memorandum of Understanding – 

All parties can explicitly describe all of their objectives and goals in a memorandum of understanding. This reduces uncertainty and eliminates the possibility of future disputes. In addition, by explicitly stating what each party expects of the other, an MOU serves as a blueprint for any future contract that both parties may or may not desire to draught.

Disadvantages of a Memorandum of Understanding 

The most significant disadvantage of an MOU is that it is not legally enforceable. While this may be advantageous in some situations, neither party is obligated to follow through on what they state in the MOU, so they can simply walk away or adjust their expectations. Memorandum of Understandings can take a lot of time and effort to draught, and if one party’s requirements change drastically, the MOU is a waste of time and effort.

Data that a Memorandum of Understanding must contain are as follows:

1. The scope and the action intended 
2. Data regarding the project
3. Name of the parties that are involved in the agreement
4. Responsibilities of the involved parties 
5. Beginning date of the agreement 
6. The tenure of the agreement
7. When or how do the parties involved and terminate the agreement

It is critical to producing a clear document that all parties can agree on and comprehend when signing a memorandum of understanding. That is why working with an expert attorney who can ensure that the MOU properly defines the aims, intentions, and expectations is critical.

Conclusion:

Although an MOU is not legally enforceable, it enables parties to prepare for the signing of a contract by outlining the general concepts and expectations of their agreement. Communicating what each party intends to benefit from an agreement in unambiguous words can be critical to the future success of signing a legal contract.