What are contracts and memoranda of agreement? ___You know that a contract or subcontract is a legal document that sets out the terms of an exchange of value. ___You know that a memorandum of agreement is not a legal document, and that it describes a previously agreed upon arrangement for cooperation, collaboration, mutual support, or the like among individuals or organizations. When might you use each document? ___You use a contract or subcontract whenever money is involved, or where there 's some other exchange of one commodity for another. ___You use a memorandum of agreement to clarify the relationships between or among two or more cooperating or collaborating individuals or organizations. How do you read and understand a contract? ___You read every word of the document carefully. ___You don't allow yourself to be intimidated by legal language. ___You familiarize yourself with standard phrases and clauses that you might see in a number of contracts. ___You get an explanation - from the writer of the contract and/or from an attorney or other person whose advice you trust - if there's something you don't understand or have questions about. ___You make sure that the terms of the contract are acceptable by asking yourself: Whether everything in it is feasible. Whether all the conditions are possible for your organization. Whether anything in the contract is dangerous to the functioning or the life of your organization. Whether the resources specified in the contract - funding or otherwise - are adequate for you to be able to do the work. Whether there are protections written in for you, as well as for the funder, in the case of disagreement, or charges of violating the contract. Whether the restrictions and regulations, if there are any, are reasonable and not disruptive to the overall operation of your organization. Whether anything in the contract is different from what you've been told previously. ___You negotiate about the points that you want to change before you sign the contract. How do you read and understand a memorandum of agreement? ___You read every word carefully. ___You get help in understanding anything that isn't clear. ___You make sure the terms of a memorandum of agreement are acceptable by asking yourself: Whether all the points are reasonable. Whether it reflects what you expected and what you've already agreed to. Whether the document addresses the situation or issue involved in a way you support. Whether any parties to the agreement - including you - are promising anything they can't deliver. Whether everything in the agreement is feasible - doable with the resources available, for instance, and within the necessary time frame. Whether you are being asked to agree to something that's damaging to your organization or against its principles. ___You negotiate about any points you want to change before you sign the agreement. ___You treat the memorandum of agreement as a promise that needs to be honored just as if it were a contract. How do you draft a contract? ___You make both the language and the content of the contract as clear and specific as possible. ___You explain who the parties to the contract are, and the time period that the contract covers. ___You explain, as specifically as possible, what the scope of services, products, or other exchange is on both sides; who is to be involved; how it is to be accomplished; when it is to be done (the time frame for the contract); and where it will take place, if that is relevant. ___If there's money involved, you explain the details of payment. ___You explain any other obligations of each party. ___You explain how the contractor's performance will be evaluated. ___You explain the consequences if either party fails to deliver on what it has agreed to. ___You explain the conditions under which the contract can be ended by either side. ___You explain the conditions under which the contract can be changed. ___When you've finished, you show the contract to others - particularly those who were involved in initial discussions with the contractor - to see if it says what you intend it to, and if it covers clearly all the specifics that you want to address. ___You give the contract to the contractor, and are prepared to negotiate some parts of it. How do you draft a memorandum of agreement? ___You work out the agreement beforehand with the other signees, so there are no surprises. ___You make both the language and the content of the agreement as clear and specific as possible. ___You draft a memorandum of agreement in the same way, and with the same care, that you would draft a contract.
