The memo is a common form of communication in the office, with basic elements including author, recipient, date, topic, and information. Different types of memos include Memorandum of Understanding, Memorandum of Agreement, Private Placement Memoranda, and Memorandum of Association. Memos can be issued and stored electronically or in paper form.
As one of the most common forms of communication within an office environment, the memo or memorandum serves as a quick note to convey information from one section of the company to another. It can be drafted by management and addressed to other employees or by a department head to the company at large. Generally, a memo will include some basic elements, such as the name of the document’s author, intended recipient(s), issue date, general topic, and the body of the document that contains the information to be shared.
There are actually several common document types in this style used in the business world. An often used format is called a Memorandum of Understanding. This document is used to define and document the perimeters of an employment relationship between two parties. Overall, the body of this note addresses the main reason for the partnership, the expected outcome, and the general terms and conditions that will govern the business arrangement. In many cases, it acts as a precursor to a more formal contract.
A Memorandum of Agreement, or MOA, is similar to a Memo of Understanding, in that the document is used to spell out the terms and conditions that will apply to all participants in a joint project. However, the MOA tends to go into more detail, outlining processes and procedures as well as addressing the general perimeters of the working arrangement.
Private placement memoranda are a common communication tool involved in securities offerings. This type is normally addressed to a select number of accredited investors and includes all details pertinent to the sale of the security, including the final date on which the offer will be honored. While not considered a contract, this document is meant to be a more or less firm offer that precludes an actual financial transaction.
The Memorandum of Association is a foundational document for many businesses of all sizes. Commonly referred to as “The Memorandum,” it essentially defines the relationship between the company and the outside world. The contents touch the relationship with customers, suppliers and distributors. In addition to defining ratios, it also indicates the amount of shares a company is authorized to issue and the range of operations the company will engage in in pursuit of profitability.
As a general written communication tool or as a document with a specific purpose, the memo is a useful tool in virtually any business setting involving two or more parties. Today they can be issued and stored as an electronic document, as well as in paper form.
Protect your devices with Threat Protection by NordVPN
