A memorandum of understanding (MOU) is a document that expresses mutual accord between two or more parties. MOU is not a legal contract but it can be recognized as binding on the rights and obligations mentioned in it. It is more of a formal agreement between two or more parties and proof of their commitment to each other. MOU has commonly opted when the parties do not want the deal to face any compulsion by law. However, if any legal elements are mentioned in the memorandum of understanding, then the parties have to abide by it as well.
* What is the Difference between MOU and Other Agreements? The agreement is a document party accept to work together on a project or standard work process. It contains a proposal and its acceptance by the parties involved. If anyone party breaks the terms and conditions of the agreement, the other party can go to the court and get it enforced.