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memorandum of understanding (MOU or MoU)

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

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Dear Sir,

We have purchased a property in partnership for 5 people. One of my partner has decided to register the property to his name and he has considered for doing the MOU for another 4 peoples. My 1st Question is- is it correct? and My 2nd qtn is - is it having the MOu for equal rights ? Please advice me as soon as possible.
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Can two branches of same company enter into a Memorandum of Understanding?
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I'm developing a memorandum of understanding between community agencies and the coalition they have created. Is it appropriate to allow this memorandum to serve as an agreement between two of the many agencies. For example: Agency 1 has received a grant and needs Agency 2 to accept and oversee the grant.
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If a MOU is made between two parties that is damaging to a third, can that third party seek to have it overturned can any one help  
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