Legal · Document
MoU — Memorandum of Understanding
A non-binding written record of an understanding between two parties, typically setting out the commercial heads of terms ahead of a binding contract.
In practice
MoUs are commonly used in joint-venture discussions, M&A preliminaries, partnership exploration and government-private sector arrangements. They signal commitment without legal enforceability. Some clauses (confidentiality, exclusivity, governing law) are typically marked as binding even within an otherwise non-binding MoU.