Memorandum of Understanding (MOU)

A memorandum of understanding (MOU) is a non-binding agreement between two or more parties that outlines their intentions and expectations for a proposed business relationship or project. It serves as a preliminary document that sets the stage for further negotiations and the development of a more formal contract. An MOU typically includes a description of the parties involved, the purpose and scope of the agreement, the roles and responsibilities of each party, and any key terms or conditions. It may also include provisions for confidentiality, intellectual property, and dispute resolution. MOUs are an important tool for businesses to explore potential partnerships, clarify objectives and deliverables, and build trust and rapport. They should be carefully crafted to accurately reflect the parties’ intentions and to avoid creating legally binding obligations.