Allow each party to spend time checking both the initial agreement and the renewal. This reduces the likelihood or, at the very least, the effectiveness of a claim that a party has not understood new conditions or how these might affect the agreement as a whole. 1. Overview Before agreeing on the final terms of an agreement, the negotiating parties may choose to indicate a written starting point defining a first offer and certain terms and conditions. This first written document is called a Memorandum of Understanding (sometimes referred to as a « Memorandum of Understanding » or « Memorandum of Understanding »). A Memorandum of Understanding sets out the fundamental terms of a proposed transaction, including price, asset description, restrictions and closing conditions. How do you exercise an option to extend the duration of the contract? What if you send them a letter asking them to sign…