A Document of Understanding (DOU) is a legally binding document that outlines the details and conditions of an agreement between two or more parties. It can be used for both short-term and long-term agreements, and it can be tailored to fit the specific needs of each negotiating party. The DOU is often used as a way to memorialize verbal agreements; it clearly states the expectations and responsibilities of both sides and can help avoid future miscommunications and disputes. By signing a Document of Understanding, the parties involved agree to abide by its terms and hold up their ends of the arrangement. As such, a Document of Understanding serves as a valuable tool that helps businesses protect themselves while cultivating strong, lasting relationships.