An MOU is a contract between two parties that stands for Memorandum of Understanding. If the document is notarized according to the law, it is a legally valid and important document in the case.
Is notarized MOU a legal document admissible in court
I need to determine if the Notarized MOU document on Rs 100 stamp paper holds legal value in court. An MOU was done in 2004 between my father and uncle. Now Uncle's Kin is not honoring the MOU agreement. The MOU was related to shares in the PVT Ltd company and property division.
Asked 1 year ago in Civil Law
10 Answers
Hi Sir/Mam,
Indeed notarised MOU does holds legal value in the eyes of law and if your uncle or any other person is raising hinderance in performance to the same, you or your father have all rights to file a civil suit under specific performance act.
For further query/clarification you can connect with me.
Dear Client,
A Memorandum of Understanding (MOU) is a legally valid and significant document between two parties, functioning as a contract. When the document is notarized in accordance with the law, it carries legal weight and holds importance in the respective case.
Yes it may hold legal value in court but subject to what is written in that and intention.
Specific performance in court permitted of such agreement.
Mou is required to be duly stamped and be registered till then document can be looked into for corraborative purpose only. Any claim under MOU would attract applicable stamp duty and penalty upto ten times beside payment of applicable stamp duty. Rest on examination of facts and documents in details.
An unregistered MOU is not enforceable in court of law.
If there's no time limit mentioned in it, then it may be considered as barred by limitation too
If it a registered agreement and if the validity is still there, you have a legal recourse.
It’s admissible but If the contents in it is mandatorily registered then you need to get it registered
- As per Section 10 of the Indian Contract Act, all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void.
- Further, a MOU is a statement of understanding between two or more parties which when made has no enforceability in the eyes of law , as such an agreement has no intention to create a legal bond between such persons.
- But , when an MOU has been made as per section 10 of the Indian contract Act, then it is a valid agreement.
- Further , no stamp duty is required on MOU, but if the MOU for an agreement to purchase immovable property worth more than Rs. 100/- , then it is mandatory to be registered and stamped .
- Further, if the MOU contains its expiration , then it lost its value , otherwise , the limitation period to challenge an MOU is 3 years from the ate of its execution .
- Since that MOU was done between your father and uncle and hence the legal heirs of both the parties are bound to comply the terms of the MOU , however there must be a clause for legal heirs in that MOU.
- Further , if they are not ready to honoring , then your father can file a suit before the court.
