What Does Memorandum of Understanding (MOU) Mean?
A memorandum of understanding (MOU) is a document that describes a formal agreement between two parties. It is not a legal agreement, but it does indicate the establishment of a business relationship that will continue and likely result in a legal agreement such as a contract.
Techopedia Explains Memorandum of Understanding (MOU)
An MOU is a non-binding preliminary agreement that falls somewhere between a handshake deal and a legal contract. An MOU can also be put in place before the formalities of a contract when an agreement between parties has been reached but still requires written documentation.
