Letter of understanding

Last updated

A Letter of Understanding (LOU) is a formal text that sums up the terms of an undertakings of a contract which may have been negotiated up to this point only in spoken form or otherwise informally. It reviews the terms of an agreement for a service, a project or a deal and is often written as a step before a more detailed contract is issued. [1]

Contract agreement having a lawful object entered into voluntarily by multiple parties

A contract is a legally-binding agreement which recognises and governs the rights and duties of the parties to the agreement. A contract is legally enforceable because it meets the requirements and approval of the law. An agreement typically involves the exchange of goods, services, money, or promises of any of those. In the event of breach of contract, the law awards the injured party access to legal remedies such as damages and cancellation.

Service (economics) intangible offering inseparable from its creators labor, which brings utility value to their buyer

In economics, a service is a transaction in which no physical goods are transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the buyer's willingness to make the exchange. Public services are those that society as a whole pays for. Using resources, skill, ingenuity, and experience, service providers benefit service consumers. Service is intangible in nature.

Contemporary business and science treat as a project any undertaking, carried out individually or collaboratively and possibly involving research or design, that is carefully planned to achieve a particular aim.

The LOU may provide for example:

A service provider (SP) provides organizations with consulting, legal, real estate, communications, storage, processing. Although a service provider can be an organizational sub-unit, it is usually a third party or outsourced supplier, including telecommunications service providers (TSPs), application service providers (ASPs), storage service providers (SSPs), and internet service providers (ISPs). A more traditional term is service bureau.

Milestones are tools used in project management to mark specific points along a project timeline. These points may signal anchors such as a project start and end date, or a need for external review or input and budget checks.

Related Research Articles

In proprietary software, an end-user license agreement (EULA) or software license agreement is the contract between the licensor and purchaser, establishing the purchaser's right to use the software. The license may define ways under which the copy can be used, in addition to the automatic rights of the buyer including the first sale doctrine and 17 U.S.C. § 117.

Certified Public Accountant title of qualified accountants in many countries

Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA is a license to provide accounting services to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state has passed mobility laws to allow CPAs from other states to practice in their state. State licensing requirements vary, but the minimum standard requirements include passing the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience.

Management consulting is the practice of helping organizations to improve their performance. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external advice and access to the consultants' specialized expertise.

A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals. It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage.

Accenture is a global management consulting and professional services firm that provides strategy, consulting, digital, technology and operations services. A Fortune Global 500 company, it has been incorporated in Dublin, Ireland, since 1 September 2009. In 2018, the company reported net revenues of $39.6 billion, with more than 459,000 employees serving clients in more than 200 cities in 120 countries. In 2015, the company had about 150,000 employees in India, about 48,000 in the US, and about 50,000 in the Philippines. Accenture's current clients include 95 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500.

A freelancer or freelance worker, is a term commonly used for a person who is self-employed and is not necessarily committed to a particular employer long-term. Freelance workers are sometimes represented by a company or a temporary agency that resells freelance labor to clients; others work independently or use professional associations or websites to get work.

A consultant is a professional who provides expert advice in a particular area such as security, management, education, accountancy, law, human resources, marketing, finance, engineering, science or any of many other specialized fields.

Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing risks such as exposure to fraud and collusion.

Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee. An underwriting arrangement may be created in a number of situations including insurance, issue of securities in a public offering, and bank lending, among others. The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter.

An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. But generally, the contract of employment denotes a relationship of economic dependence and social subordination. In the words of the controversial labour lawyer Sir Otto Kahn-Freund,

"the relation between an employer and an isolated employee or worker is typically a relation between a bearer of power and one who is not a bearer of power. In its inception it is an act of submission, in its operation it is a condition of subordination, however much the submission and the subordination may be concealed by the indispensable figment of the legal mind known as the 'contract of employment'. The main object of labour law has been, and... will always be a countervailing force to counteract the inequality of bargaining power which is inherent and must be inherent in the employment relationship."

A statement of work (SoW) is a document routinely employed in the field of project management. It defines project-specific activities, deliverables and timelines for a vendor providing services to the client. The SOW typically also includes detailed requirements and pricing, with standard regulatory and governance terms and conditions. It is often an important accompaniment to a master service agreement or request for proposal (RFP).

Executive search is a specialized recruitment service which organizations pay to seek out and recruit highly qualified candidates for senior-level and executive jobs. Headhunters may also seek out and recruit other highly specialized and/or skilled positions in organizations for which there is strong competition in the job market for the top talent, such as senior data analysts or computer programmers. The method usually involves commissioning a third-party organization, typically an executive search firm, but possibly a standalone consultant or consulting firm, to research the availability of suitable qualified candidates working for competitors or related businesses or organizations. Having identified a shortlist of qualified candidates who match the client's requirements, the executive search firm may act as an intermediary to contact the individual(s) and see if they might be interested in moving to a new employer. The executive search firm may also carry out initial screening of the candidate, negotiations on remuneration and benefits, and preparing the employment contract. In some markets there has been a move towards using executive search for lower positions driven by the fact that there are less candidates for some positions even on lower levels than executive.

Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. The personnel involved in contract administration required to negotiate, support and manage effective contracts are often expensive to train and retain. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk.

Terms of reference (TOR) define the purpose and structures of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal. Although the terms of reference of a project are often referred to as the project charter, there are significant differences between the two. This article will describe the importance of a TOR containing detailed definitions however, a project charter is defined as containing high-level requirements, assumptions, constraints and descriptions as well as a budget summary without detail and a milestone-only schedule.

Employment Rights Act 1996 United Kingdom Law

The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.

Contractual term any provision forming part of a contract

A contractual term is "Any provision forming part of a contract". Each term gives rise to a contractual obligation, breach of which can give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract.

Letter of resignation letter written to announce the authors intent to leave a position currently held

A letter of resignation is written to announce the author's intent to leave a position currently held, such as an office, employment or commission.

<i>Carmichael v National Power plc</i>

Carmichael v National Power plc [1999] UKHL 47 is a British labour law case on the contract of employment for the purpose of the Employment Rights Act 1996.

Contractual terms in English law is a topic which deals with four main issues.

<i>Uber BV v Aslam</i>

Uber BV v Aslam[2018] EWCA Civ 2748 is a UK labour law case, concerning the scope of employment rights in regards to temporary work for Uber drivers.

References

  1. Belew, Shannon (2018). "Benefits of Developing a Written Consulting Contract". About.com. Consulting.