Quick Definition

A Memorandum of Understanding (MOU) is a non-binding agreement between two or more parties outlining the terms and details of an understanding, including each parties' requirements and responsibilities.

Examples

• 1Two companies agree on a joint venture to develop a new property and use an MOU to outline the initial framework of their collaboration.
• 2A university and a private company sign an MOU to collaborate on research and development projects, specifying the roles and contributions of each party.
• 3Local government and a non-profit organization draft an MOU to partner on a community revitalization project, detailing the resources each will provide.

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