Dealing with Business Engagements involved with 1 or more people:

In dealing with business interactions it is extremely essential to have in writing clearly points of engagement and expectations. Moreover, to avoid any misinterpretations to go over each point carefully and discuss to avoid heartaches at later stage of the business cycle.Equally important is to better understand the personality and characteristics of individuals involved. People come in different backgrounds, cultures, values and disciplines. If their core personality clashes with yours, you are there for a rough ride.

In partnerships and alliances, it is best to understand each partner’s expectations and deliverables and time frame. It Is best to clearly state the exit – if things don’t work out, who gets what in terms of shares or rights to buy the shares of the exit party.

Below is one example of recent MoU I drafted:

MoU  between XXXXX and XXXXXX in formulating XXXXXXXXXXX.

• XX and XX along with 2 equal partners are forming XXXXXXX with an objective of establishing a XXXXXXXXXXX
• Once the company is formed and funds are available, formal Memorandum of Understanding would be formulated by reputed firm.
• XX and XX is forming this company with full transparency and in full confidence and motivation to make this a very successful venture.
• XX and XX both knows the strengths and weaknesses of each other, and forming the company knowingly and willingly and would not dwell on those weaknesses of each other at any times.
• Neither XX nor XX are forming this company as a favor to each other – it is purely with the intention of business interests.
• We both are two independent people and partners – not an employee of each other.
• We would respect each other’s private life, family and professional time without any interference.
• We should trust and respect each other professionally at all times and not be personal.
• We should meet/conference call every Week (initially twice) to discuss the plan of the week and agree on steps moving forward . We should minute those meetings.
• The above meetings should be concise to the points, not exceeding more than 1 hour (unless required in certain cases), and agree on deliverables with time lines, etc.
• To make our meetings productive we should focus on the creativity, thinking-out-of-the-box, and ideas to grow business, and avoid negative arguments, remarks and comments.
• For XXXXX, we would consult and agree on things mutually. However, as the CEO of XXXXX    XX would make the executive call when required.
• To avoid any misunderstandings, and conflict of interests, XXXXXX mandate is to maximize the profitability and to protect its share-holder’s value.
• XX and XX in every communications should bear in mind the old relationship, brotherhood and respect should not be compromised.
• In the event we need to dissolve this relationship or/and the company, for any reasons, we would keep in mind, maintaining good relationship. We or any member of our family would not take each other to legal courts and drag each other’s name and reputation.
• In the event of dissolving this partnership , we should involve all the partners and appoint an independent and trust worthy individual whom all the partners trust to be the mediator to come out with a win-win resolution. His/Her recommendations would be taken as the final resolution.
• In the event of resolving conflicts, doubts, misunderstandings, we should initially try our best to resolve within ourselves in not more than 2 days in discussing it on our weekly meetings. However, if we are not able to resolve within ourselves, then we should have an independent and unbiased mediator. His recommendations would be taken as the final resolution.
• The core responsibility of commercials dealings would be with XX and core responsibility of technical would be with XX.