A memorandum of understanding is a formal document that outlines an agreement between two or more parties. It is not legally binding, but it indicates the parties’ desire to continue through with a contract.
The MOU serves as a starting point for negotiations since it establishes the scope and goal of the discussions. These memos are most commonly seen in international treaty discussions, but they may also be utilized in high-stakes corporate transactions like merger negotiations.
A Memorandum of Understanding (MOU) is a document that expresses a willingness to move further. It means that the parties have come to an agreement and are going forward. It is a serious assertion that a contract is impending, even though it is not legally enforceable.