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Memorandum of Understanding

A Memorandum of Understanding is a type of agreement between two or more parties. It communicates a confluence of will between the parties, showing a proposed common line of activity. A memorandum of understanding is a commitment between at least two parties illustrated in proper documents. It is not legally binding but signals the willingness of the parties to move forward with a contract.

The Memorandum of Understanding can be seen as the starting point for negotiations as it defines the scope and purpose of the talks. Such memorandums are frequently found in international treaty negotiations yet in addition, might be utilized in high stakes business related transactions, for example, consolidation of organizations.


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