The ToolBox recommends that you approach the creation in the same way as the design of a contract. This reduces misunderstandings or unintentional violations of the agreement and gives everyone the assurance that they have not promised anything that harms their organization or that is subject to expectations that they did not know before. In the area of health and community work, agreements are generally used to clarify and/or specify the terms of a cooperation or collaboration agreement with two or more organizations. For example, they must have to do with sharing space, collaborating on common goals, with any organization that contributes something to a joint effort, or with agreements to sit on the boards of the other. The guidelines for reading a memorandum of understanding are essentially the same. These are usually not written in legal language and can be quite simple, so reading and understanding can be much easier. Even if it is not a legal document, a memorandum of understanding is a promise and should be treated by the signatories in the same way as a contract: you should feel bound by it, and if you sign it, you must make every effort to execute its terms. Your organization is at least as likely to be at the end of a contract or to be invited to sign an already drafted MEMORANDUM of Understanding as you are to draft one. Before we discuss how to create one of these documents, we`ll look at how to read one. In business, a letter of intent is usually a non-legally binding agreement between two (or more) parties that describes the terms and details of an agreement or mutual agreement and establishes the requirements and responsibilities of each party – but without entering into a formal and legally enforceable contract (although a letter of intent is often a first step towards developing a formal contract).   This Agreement shall enter into force on the date of the last Party to sign this following Memorandum of Understanding. The Parties agree to this Memorandum of Understanding by their signatures below. While these definitions seem reasonably clear, there are a number of situations where the picture gets bleak.