When reading a contract, try to follow these guidelines: a Memorandum of Understanding is a document used to articulate an agreement between two or more parties. The document is likely to detail the scope of the agreement, the duration of the agreement and how the agreement can be terminated. Often, a declaration of intent is used before the parties are ready to enter into a formal agreement. Parties can use a Memorandum of Understanding to set out expectations and responsibilities before a full agreement has been reached. Tool Box believes that most small organizations, whether they design contracts or agreements, have already discussed the terms with the contractor or signatories and that there will be no surprises for anyone in the final document. This type of open and collaborative process makes everyone`s life easier and increases the chances that the terms of the contract or agreement will be respected. The funder should be able to clearly explain everything you don`t understand. If the funder is not helpful, or if you prefer to get a second opinion, you will find a lawyer, an experienced director of an organization or someone else with knowledge and experience to contract with you and explain what you do not understand. (This is one of the reasons why many non-profit and non-profit organizations have lawyers on their boards of directors.) While there are marked theoretical differences between a contract and a declaration of intent, practical differences between these two agreements may be limited by partisan intentions. An agreement becomes enforceable if there is evidence that the parties intend to create a legally binding agreement.
The standard for success could be the number of people served, specific results (none of the youth served in trouble with the police, while enrolled in the program), delivery of promised goods in a timely and intact, etc. If the evaluation is important, it should be included in the contract, as well as the one that carries it out. (Are you going to pay for an outside expert? Is self-assessment acceptable?) 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. It can be extremely simple as long as the intent is clear. (For $500.00, Fred Smith will paint the exterior of John Jones` barn with all the coverings, window wings, doors and window and door frames and edges with two red varnishes.) For example, when an organization agreed, at the request of a funder, to act as a pass for another organization that had not yet received a tax-exempt federal filing.