A Memorandum of Understanding (MOU) is an official document that outlines the agreement between two or more parties on the key points and understandings of a particular situation or project. It provides a clear understanding of expectations, roles, responsibilities and commitment levels from each party involved. It doesn’t replace a legal contract but is often seen as a precursor to creating one. MOUs generally contain specific information such as the purpose of the agreement, the scope of responsibilities for each party, and the timeline for completion. By outlining these details in advance, all parties benefit from a clearer understanding and can help ensure successful business outcomes.