How to Draft a Strong Memorandum of Understanding (MOU)

A Memorandum of Understanding (MOU) is a non-binding document that outlines the understanding between parties intending to work together. It is often used in business, government, and international relations to establish the foundation for future agreements. An MOU typically includes details on objectives, responsibilities, financial terms, and dispute resolution methods. While it lacks the enforceability of a contract, it helps organizations define their commitments and expectations, reducing the risk of disputes. MOUs are particularly useful for initial negotiations and collaborations before drafting a formal contract.