A Memorandum of Understanding (MOU) is an agreement between two partners that outlines their understanding and expectations of each other in a business relationship. This kind of agreement serves to ensure that any joint projects or decisions made by the two parties are carried out within predetermined parameters, which can help protect everyone involved. An MOU outlines key details such as commitments and responsibilities of all parties, any deadlines associated with the project, and processes for resolution should any disagreements arise. By having a clear agreement that both parties sign off on, important decisions and projects can be carried out successfully and efficiently.