"Politicians love MOUs because they are the perfect vehicle for being able to make hugely important-sounding announcements without any real depth or commitments, so avoiding difficult but necessary components like procurement and actual delivery. Big companies love them too because they get to attach themselves to government with the necessary air power to frighten away potential competitors without actually putting any money or commitment on the table."
"Actual deals on the other hand, are "agreements between two or more people to exchange valuables. In simple terms, it is an understanding whereby each party involved is expected to gain something of value from the other". Other elements that are crucial to a deal involve "good documentation clearly outlining the agreement's terms, including both parties' rights and obligations. This includes payment information, deadlines, delivery expectations, and specifics around items included or excluded in the agreement"."
MOUs are frequently used by politicians and corporations to produce high-profile announcements without committing to procurement, funding, or delivery. Corporations leverage MOUs to gain government association and deter competitors while avoiding contractual obligations. Real deals require exchange of value, documented rights and obligations, payment details, deadlines, and delivery expectations. The US-UK technology MOU contains explicit language that no participant is committed to expend funds and frames future actions as intentions, such as convening a ministerial-level working group within specified timeframes rather than binding operational commitments. The arrangement therefore resembles promotional signaling rather than enforceable agreement.
Read at ComputerWeekly.com
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