Is a Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA) considered a contract? Does the board approve MOUs or MOAs?

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Answer:

An MOU is very different than an MOA. An MOU is a document used to delineate an understanding of two organization’s roles or responsibilities. It is not usually regarded as a formal contract. 

An MOA on the other hand is usually regarded as a contract which often includes goods, services, and compensation. 

Unless specific board authorization is required, either document does not usually require board consideration. Of course there are exceptions when spending authority requires board approval or it is a government to government action of such significance it should require board approval. 

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