A memorandum of understanding is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract. The MOU can be seen as the starting point for negotiations as it defines the scope and purpose of the talks. Such memoranda are most often seen in international treaty negotiations but also may be used in high-stakes business dealings such as merger talks. An MOU is an expression of agreement to proceed.
How to Write an Memorandum of Understanding | Bizfluent
A Memorandum of Understanding shows that two or more business partners are serious about taking the next steps towards a mutually beneficial agreement. It describes the project they intend to work on together and what each party's expected contribution will be. Making a Memorandum of Understanding is easy. Using your Rocket Lawyer account, you can make, edit, share and sign your document online. The finished document can also be downloaded and printed. A MOU helps you and your partner think through how a future agreement may work before the actual legally binding agreement is signed.
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Two or more parties agree about something, and they intend to make a formal record about it, a document is written. A document where each party involved can refer to, which will be a reference point of their agreement. This is a sneak-peak of what a Memorandum of Understanding MoU is. A memorandum which is effective will prevent the occurrence of disputes regarding what each party is expected to do. There are, however, many elements that define an MoU and differentiate it from other almost similar documents.