Should we draft a Memorandum of Understanding (MOU) before agreeing on something together? How is an MOU helpful? Can we include a clause in the MOU to ensure that neither of us can back out of our agreement?

In India, while an MOU is not legally binding, it’s highly advisable to draft one before any agreement. It serves as a clear record of the terms, avoids future disputes, and can be used as evidence in court. However, including a clause preventing either party from backing out could be unenforceable, as it could be seen as restricting freedom of contract.