What is memorandum of understanding (MOU or MoU)? - Definition from WhatIs.com

Definition

memorandum of understanding (MOU or MoU)

Part of the Business terms glossary:

A memorandum of understanding (MOU or MoU) is a formal agreement between two or more parties. Companies and organizations can use MOUs to establish official partnerships.

MOUs are not legally binding but they carry a degree of seriousness and mutual respect, stronger than a gentlemen’s agreement. Often, MOUs are the first steps towards a legal contract. In US law, a memorandum of understanding is synonymous with a letter of intent (LOI), which is a non-binding written agreement that implies a binding contract is to follow.

MOUs are popular in multinational international relations because, unlike treaties, they take a short time to ratify and can be kept confidential. MOUs may also be used to modify existing legal treaties.

See also: prime contractdigital signature, contracting officer, partner relationship management, partner

 

 

Continue reading about memorandum of understanding:

Here is an example of a MoU between the National Science Foundation and NASA.

Oil-for-Food is an international MoU.

This was last updated in January 2011
Posted by: Margaret Rouse

Related Terms

Definitions

  • traceability

    - Traceability, in supply chain management, is the ability to identify, track and trace elements of a product or substance as it moves along the supply chain from raw goods to finished products. The ... (SearchManufacturingERP.com)

  • mass notification system

    - A mass notification system helps organizations send one-way alerts to staff and the public during a crisis situation. Notification can be triggered by humans, as well as sensing or security devices. (SearchDisasterRecovery.com)

  • backdoor selling

    - Backdoor selling is the unscrupulous practice of seeking information beyond what is publicly available as a means of gaining a competitive advantage for a contract or sale. (WhatIs.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About memorandum of understanding (MOU or MoU)Powered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.