Memorandum of Understanding (MOU)

Business Essentials Financial Terms Dictionary

Contents

A Memorandum of Understanding (MoU) is a document that outlines the agreements reached by two or more parties.

Memorandums of Understanding communicate the mutually recognized expectations of all parties involved in the negotiations.
Although the Memorandum of Understanding is not legally binding, it signals the inevitability of signing a binding contract.
Memorandum of Understanding is most often found in international relations.