Memorandum of Understanding for B2B Repair Services

What a good one includes

• A precise definition of the hardware types covered under the agreement, including accepted brands, models, and initial cosmetic or functional conditions.
• Clear terms on logistics ownership, detailing who covers the costs of inbound and outbound freight and who bears the risk of loss during transit.
• Agreed-upon target turnaround times for diagnostics, repair completions, and status reporting to maintain business continuity.
• Robust data security and sanitization protocols, specifying the exact standard to which client data on the devices must be wiped.
• A baseline fee structure or pricing matrix for common repairs, diagnostic fees for unrepairable units, and payment terms.
• Specifications on the quality of replacement parts to be used, explicitly stating whether original equipment manufacturer or high-quality aftermarket components are required.

Common mistakes to avoid

• Failing to clearly allocate liability for data breaches or data loss during the diagnostics and repair process.
• Omitting a clear protocol for beyond-economic-repair devices, leading to disputes over recycling fees or return shipping costs of dead units.
• Treating the MOU as a fully binding, high-penalty contract instead of a framework for operational alignment, which can stall negotiations before the partnership begins.
• Neglecting to define acceptable replacement part standards, resulting in unexpected mismatches in quality or voided device warranties.

Frequently asked questions