MEMORANDUM OF UNDERSTANDING (MoU)

MEMORANDUM OF UNDERSTANDING (MoU)

A Memorandum of Understanding (MoU) is a formal document that outlines an agreement between two or more parties. While it is not always legally binding, it serves as a framework for cooperation, clarifying roles, responsibilities, and expectations.

• Defining Intentions – It establishes the goals, purpose, and scope of the agreement between parties before entering a formal contract.
• Clarifying Roles and Responsibilities – It outlines what each party will contribute, helping prevent misunderstandings.
• Setting Expectations – It provides details on timelines, deliverables, financial commitments, and other key aspects of the collaboration.
• Establishing a Framework for Negotiation – It serves as a reference for future contracts or legally binding agreements.
• Ensuring Confidentiality and Protection of Interests – It may include clauses about confidentiality, intellectual property, or dispute resolution.
• Facilitating Partnerships and Collaborations – It is commonly used in business partnerships, joint ventures, academic collaborations, and government agreements.

An MoU is a valuable tool for aligning parties on mutual interests and serves as a stepping stone toward more formal agreements.