The touchstone for the development of a good contract or agreement is absolute clarity on everything covered by the document. In the case of a contract, this means describing precisely who, how, when and where the exchange, as well as: if you work with other groups, hire consultants or hire organizations to provide services to your clients or target audience, you will often find it useful to “receive it in writing”. This section helps you read the two types of documents most organizations need in their dealings with others, and create contracts and memorandas of the agreement. A Memorandum of Understanding is not a legal document and is not applicable in court. In most cases, by calling a memorandum of understanding, the signatories show that they do not intend to enforce their conditions. As has already been said, a treaty is a legal document. In its simplest words, it is a declaration of an agreement between or between two or more parties, which involves an “exchange of value.” It may be money or there may be an exchange of goods, services, space or any other commodity. If there is an agreement to provide something in exchange for something else, it is considered a contract. A Memorandum of Understanding is generally different from a treaty. It is probably not full of legalese, it is probably shorter, and it generally contains few conditions, if any, that are not directly related to the agreement itself.

This often makes it easier to read and understand than a contract. Sometimes donors, in trying to promote cooperation, require agreements with certain agencies or organizations submitted with funding proposals. These agreements generally specify the obligation for the signatory to cooperate with the organization that, in a certain way, solicits funding – participant, receive recommendations or, for example, carry out activities on an advisory board. A contractual agreement is less binding than a contract and can be used to outline the terms and details of the agreement before the contract is concluded. It can be used in court if a party does not fulfill one or more of the obligations covered by the agreement. Tool Box believes that most small organizations, whether they design contracts or agreements, have already discussed the terms with the contractor or signatories and that there will be no surprises for anyone in the final document.