Question

The Chief Information officer wants to establish a non-binding agreement with a third-party that outlines the objectives of a mutual agreement dealing with data transfer between both organizations before establishing a formal partnership. Which of the following would most likely be used.

1. MOU

2. OLA

3. NDA

4. SLA

Answer 1

SOLUTION:-

CORRECT ANSWER:- (a) MOU

EXPLANATION:- MOU(Memorandum of Understanding) is normally utilized for a non-binding contract. It is an agreement between two or more parties outlined in a formal document. It is not legally binding but indicates the consent of the parties to move forward with a contract.

On the other hand, SLA(Service Level Agreement) is a agreement about the ability of the support system to respond to problems within a certain time frame while providing an agreed level of service.

OLA(Operating Level Agreement) is an internal organizational document that details the relationships that exist between departments to endorse business activities.

NDA(Non-Disclosure Agreement) is an agreement between two parties that defines what information is considered confidential and can not be shared outside the two parties.

Therefore, option(a) MOU, is the correct answer and other options are wrong.

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