What is the full form of MOU

MOU:Memorandum of Understanding

MOU stands for Memorandum of Understanding. MOU is a formal agreement between two or more parties. Companies and organizations can use MOUs to establish official partnerships.

MOUs aren’t legally binding but they carry a degree of seriousness and mutual respect, stronger than an agreement, MOUs are the first steps towards a legal contract.

In US, a memorandum of understanding is synonymous with a letter of intent (LOI), which is a non-binding written agreement that implies a binding contract is to follow.

Many companies and government agencies use MoUs to define a relationship between departments, agencies or closely held companies

The MOU can be seen as the starting point for negotiations as it defines the scope and purpose of the talks. Such memoranda are most often seen in international treaty negotiations but also may be used in high-stakes business dealings such as merger talks