Type of Agreement

Memorandum of Understanding (MoU)

A Memorandum of Understanding is an agreement two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract. An MoU is an expression of agreement to proceed. It indicates that the parties have reached an understanding and are moving forward. Although it is not legally binding, it is a serious declaration that a contract is imminent.

A Memorandum of Agreement (MoA) is a written document describing a cooperative relationship between two parties wishing to work together on a project or to meet an agreed-upon objective. An MoA serves as a legal document and describes the terms and details of the partnership agreement.

An MoA is more formal than a verbal agreement but less formal than a contract. Organizations can use an MoA to establish and outline collaborative agreements, including service partnerships or agreements to provide assistance and training.