Two organizations can sign a Memorandum of Understanding to cooperate on a program. One of them spends money on the basis of their agreement to set up the program and the other – without whose participation the program cannot work – turns around. The first organization may then be required to repay the grant allowance, since it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the law could force the second organization to reimburse the first organization… or maybe not. It would depend on the circumstances and the opinion of the judge – so it is a grey area. For example, a diverse group of organizations, including a women`s crisis centre, an organization for the elderly, an adult literacy program, a community-run theatre, a family planning program and a youth service provider, came together to look for funding that could affect two or more of them. Their goals were to generate creative programs and find new and different sources of funding for all organizations. They drafted a Memorandum of Understanding detailing their relationships and describing how they would seek common funding and how common funding could work in different circumstances. If the contract is to be concluded in court, its expectations must be clear enough to be applied. (It is a good idea to work out the details of the contract with the contractor if possible.

In this way, the terms of the contract are much more likely to be both achievable and acceptable, and the chances of the outcome being exactly what is desired are much higher.) In particular, in the kind of long, small print, the standard contract mentioned above, there are often important conditions buried in odd places. Many public funders require that you have all the registrations related to the contract for a period of time, usually five years. Depending on the terms of the contract, they can request these records at any time during this period, and if you can`t produce them – especially if you can`t prove that you spent the money as you said – you can return the money! It is important to make sure that you understand all the contractual terms, not just those that apply specifically to the services provided by you. While it is rare to see soft things in the multilateral field, transnational air agreements are in fact soft. A contract may or may not be written, although a written contract is clearer and much easier to implement than an oral contract, because a written document facilitates proof of the existence of a contract. It is not necessary to characterize it as a contract if it is clear that both parties intend to have a formal document and that it is a reflection.