Memorandum of Understanding (MOU)
A legal document outlining the terms and details of an agreement between parties, including each parties requirements and responsibilities. Investopedia Says:
The MOU is often the first stage in the formation of a formal contract. An MOU is far more formal then a handshake and is given weight in a court of law should one party fail to meet the obligations of the memorandum. Related Terms:
Gentleman's Agreement
Heads of Agreement
Hell or High Water Contract
Obligation
Prospectus |