News: LMG Latrobe Magnesium Signs Binding MoU With Société Le Nickel, page-10

Hi Cameron, nice to hear from you.

I have thought that a binding MOU was strange right from there start. I did some searching and found some useful insights.

An MOU can just be an agreement between two parties, that outlines conditions, timeframe, responsibilities, corporation, obligations, legal jurisdiction, etc.

Usually an MOU signals a contract is imminent.

Yet also a MOU can be binding depending upon wording and intent of signatures.

Binding or non-binding?

"There is a myriad of case law relating to the enforceability of MOUs, where one party may renege on a commitment or not follow through on the project."

"Precise drafting is essential to achieving the intended outcome of whether an arrangement is binding or not."

"At the time of drawing up the MOU, it is important for the parties to decide whether they wish to be bound by the terms of the MOU. This is a decision that will change from project to project. However, it iscommon practice for an MOU to be part binding and part non-binding."

https://www.pwc.com.au/legal/assets/investing-in-infrastructure/iif-39-memorandum-feb16-3.pdf

Hope that helps a bit.

Regards
Ken