Memorandum of Understanding (MOU)
A memorandum of understanding (MOU) is a preliminary or exploratory agreement to express an intent to work together.
- intended to be relatively informal and not to act as binding contracts
- is not legally binding
- does not involve the exchange of money
- almost always have clauses stating that the parties shall respect confidentiality
- outlines the intentions, shared goals, and general terms of cooperation between parties
- serves as a document of understanding and good faith
- purpose:
- ensure that all parties involved in the agreement understand each other’s expectations and obligations
- serves as a reference point for the parties to use in a dispute
- Once the memorandum of understanding is signed, it is considered a binding document
- should be reviewed and updated regularly
- may contain:
- uptime, data access, response times, etc.