What is the difference between a joint venture agreement and a memorandum of understanding?

Question

What is the difference between a joint venture agreement and a memorandum of understanding?

Answer 1

A joint venture agreement is legally binding and the MOU is not legally binding - in most cases.

An MOU is more of an understanding and agreement between parties regarding something but without the legally binding power of a contract.

Answer 2

I would define a joint venture agreement as a legally binding contract between two or more parties where the respective duties and responsibilities of each of the parties to the agreement are detailed.

The memorandum of understanding is more of a general outline of what objective the parties are intending to complete. The MoU will be the basis of the completed joint venture agreement.

Answer 3

Responsibility! In a joint venture you become party to. Memorandum of understanding you just agree with the general principles of.