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What is included

Heads of agreement & MOU are pre-contract documents used prior to entering into a more ‘formal’ contract. Non-disclosure agreements are also used as pre-contractual documents and are covered in a separate collection dealing with confidentiality (see Confidentiality Agreements).

‘Heads of agreement Australia’ (HOA) and ‘memorandum of understanding’ (MOU) are terms used interchangeably to cover any agreement that is entered into prior to entering into a contract. This may be desirable where the parties are in the early stages of negotiation and wish to confirm the basic points of their agreement.  HOA’s and MOU’s are most commonly used in the following circumstances:20

  1. Commercial Leasing
  2. Sale of business
  3. Joint ventures
  4. Sale of shares
  5. Distribution Agreements / supply agreements / manufacturing agreements

The Heads of Agreement, although not a fully fledged contract, can still contain binding commitments.

Heads of Agreement Australia


A Heads of Agreement precedent for general use. Includes provisions relating to:

  • Subject to contract
  • Payment of costs
  • Terms to be included in contract
  • Form of contract included as Annexure  A

4 pages long.

Includes GST


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What is a Heads of Agreement & MOU

Both the Heads of Agreement and the Memorandum of Understanding serve as preliminary agreements that outline the key terms and intentions of the parties involved. While an HoA is typically non-binding and more concise, an MOU can be more detailed and may include binding provisions. Both documents are valuable tools for setting the stage for more detailed, legally binding contracts.

Key Elements of a Head of Agreement

Key Elements of a Memorandum of Understanding:

  1. Parties Involved: Identification of the parties entering into the MOU.
  2. Purpose: A detailed description of the purpose of the MOU.
  3. Scope of Work: Specific tasks, responsibilities, and obligations of each party.
  4. Duration: The time frame for the MOU, including start and end dates.
  5. Financial Arrangements: Any financial commitments or terms agreed upon by the parties.
  6. Confidentiality: Provisions to ensure the confidentiality of shared information.
  7. Dispute Resolution: Mechanisms for resolving any disputes that arise from the MOU.
  8. Binding Provisions: Clauses specifying which parts of the MOU are legally binding.
  9. Termination: Conditions under which the MOU can be terminated.
  10. Governing Law: The legal jurisdiction governing the MOU.
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Established since 2015, Precedents Online leads the industry with a diverse collection of over 300 legal templates. Our legal documents, meticulously crafted by practicing Solicitors and renowned legal authors, provide you with the precise solutions you seek. Step into a world where legal paperwork is made easy .

Eric Kalde is the author of over 300 +  practice guides published through the leading Australian legal publishers Precedents Online.
Lawyers all over Australia rely on Eric Kalde’s precedents and practice guides in their legal practice.
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