A mutual agreement between two or more parties to engage in a transaction which provides benefits to each party is known as what?

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Business

Adonis Marks

Today, 11:35

A mutual agreement between two or more parties to engage in a transaction which provides benefits to each party is known as what?

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Ezekiel · Answer 1

This type of agreement is known as Memorandum of Agreement. In a MoA (Memorandum of Agreement), two parties or more agrees to work together on a project or a certain objective.

This can include mutual trading of goods and services, which would later on be arranged in a contract. The use of this agreement is to ensure that both parties are now legally bonded to honor their parts in the agreement.