Memorandum of Understanding (MOU)
A Memorandum of Understanding is a non-legally binding precursor document that allows you to record proposed terms with another party during the negotiation stage.
4.3 (181 reviews)
Under 10 minutes
Suitable for Australia
Document Overview
If you are interested in entering into a formal agreement or formal contract with another entity, a Memorandum of Understanding (MOU) is a good document to start with if further negotiations ensue. A Memorandum of Understanding is a preliminary written agreement, though non-legally binding, sets out the intentions of the parties involved and their proposed terms & common vision in the negotiations with consent. After the Memorandum of Understandings commencement date occurs, you will be able to record what has already been agreed on before a legally enforceable document is executed.
As with any business dealing, it is paramount that both parties understand each other's goals and objectives. While this can be difficult at times, an MOU can be a great asset to your business relations. Without clear terms and effective communication, dealings will likely fail. This is why an MOU is greatly beneficial. Parties are able to simply set out their requirements and expectations. As a result, this will establish a common intention for future engagements.
Additionally, if you're communicating sensitive information to potential investors, it is essential to ensure this information is protected with a Memorandum of Understanding.
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Memorandum of Understanding (MOU)
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.