A Memorandum of Understanding (MoU) is a formal but non-binding agreement between two or more parties that outlines the terms and details of a mutual understanding or agreement. It is often used to establish a framework for cooperation, setting out the intentions and expectations of the parties involved. While an MoU is not legally binding, it signifies a commitment to move forward in good faith and is often a precursor to a legally binding contract.

Key Features of an MoU:

• Non-Binding Nature: An MoU is generally not legally binding, meaning that it does not create enforceable obligations for the parties.
• Intentions and Expectations: Clearly outlines the intentions, expectations, and general terms of the agreement between the parties.
• Detailed Framework: Provides a detailed framework for future agreements, including specific goals, roles, responsibilities, and timelines.
• Flexibility: Offers flexibility as it does not lock the parties into a rigid contractual framework.
• Good Faith Agreement: Indicates that the parties are negotiating in good faith and are serious about reaching a formal agreement in the future.