A Memorandum of Understanding (MOU) is a formal agreement between two or more parties outlining the terms and details of an understanding, including each party’s requirements and responsibilities. While not legally binding, an MOU signals a serious commitment and a mutual intention to move forward with a contract. It establishes a clear framework for collaboration, specifying the objectives, scope, and roles involved. MOUs are often used in business, government, and academic settings to clarify and document the terms of partnerships, joint ventures, or cooperative projects before finalizing more detailed and legally binding agreements.