Memorandum of Understanding between Two Companies Starting Business. This document is intended to serve as a Memorandum of Understanding between companies ABX and XYZ.
The two companies have reached an agreement to work together on a particular project, to provide services to other companies in a mutually compatible manner or to supplement the activities of each other when appropriate using the services, personnel and equipment that each company may provide.
It is agreed that the ABC Company will be the Lead Company, and the XYZ Company will be he subordinate company in this venture.
By virtue of the agreement, the ABC Company will have no control over the operations, personnel or activities of the XYZ Company. The XYZ Company as he subordinate will be required to fulfill the tasks set forth by the ABC Company which should be listed and then attached to this document after being signed by representatives of the two participating companies.
Each company will be responsible for providing its own personnel, equipment and supplies, unless an agreement is reached between the two company to share the use of the aforementioned items.
Each company will be required to provide proof of coverage all the mandated insurance required by the states or states in which work will take place and include but not be limited to worker’s compensation, fair labor practices and any other mandates of the affected state or states where the operations are taking place.
In a separate document to be signed by representatives of both companies, of responsibilities, projects, and related matters should be drafted, parties and then signed by both parties and implemented in accordance with the Memorandum of Understanding.
Neither party shall be held responsible nor sustain any liabilities if the projected if delayed because of supplies, weather, delivery or other reasons. However, either company, ABC or XYZ can be subject to penalties to be determined by the client that results in delays, errors or other issues.
This Memorandum of Understanding shall not be considered as a work contract for a particular project. Instead, it is and will be viewed as a document to set forth a procedure for the two companies to come together on the project, which is to be identified by name, owner, location, ultimate use and anticipated completion date. Such document shall be attached to this document.
This document and all attachments are to be signed by representatives of both companies and shall be binding for the duration of the project.
Representative of ABC Representative of XYZ
The address and phone numbers and titles for both persons signing this agreement are to be included.
A notary public or an attorney with notary privileges should be present when the documents are signed, and their signature shall be affixed to each document.