Memorandum of Understanding (MoU)

A Memorandum of Understanding (MoU) is a formal agreement between two or more parties that outlines the terms and details of a mutual understanding or partnership. While it is not always legally binding, an MoU indicates a serious commitment and intention to collaborate or work together in a specified manner.

Key Features of an MoU:

• Intent to Cooperate: It signals the willingness of the parties to move forward with a working relationship.
• Clarity and Structure: An MoU clearly defines the roles, responsibilities, and expectations of each party, helping to prevent misunderstandings.
• Non-binding Nature: In most cases, an MoU is not legally enforceable like a contract, but it demonstrates the parties’ good faith and mutual agreement.
• Foundation for Future Agreements: It often serves as a precursor to more formal, legally binding contracts.