Agreement of Understanding (AOU) is an official document outlining the details of a transaction or agreement between two or more parties. It outlines the mutual understanding and responsibilities of each party involved, and is usually signed by all parties to signify their commitment to upholding the terms of the agreement. AOUs vary from contract to contract, but generally include details such as: obligations and rights of each party; timeframe for completion of tasks; payment plans and timelines; confidentiality policies; dispute resolution options; and governing law. By signing an AOU, both parties have accepted its terms and conditions, and are legally bound to uphold them.