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A memorandum of understanding (MOU or MoU) is a formal agreement between two or more parties. It expresses a convergence of will between the parties, indicating an intended common line of action.

How to use a MoU

How to use it?

MOUs are not legally binding but they carry a degree of seriousness and mutual respect, stronger than a gentlemen’s agreement. Often, MoUs are the first steps towards a legal contract. For ex, if you buy a house and can pay for it, only after 6 months, you can sign a MoU with the dealer saying that you will pay after 6 months and give just some advance amount at the current moment. Legal paper-work has to be done later.

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