Memorandum of Understanding Template

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Memorandum of Understanding Page 1
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Updated Jan 24, 2024
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A memorandum of understanding, often simplified as MOU form, is a formal, non-binding agreement between two or more parties outlining the terms and details of an understanding. These multilateral or bilateral agreements offer a framework for a relationship of clear cooperation and coordination. Fill out this template on Lawrina and download a ready-made PDF document in a flash.
Paper titled "Memorandum of Understanding"; woman and man shaking hands, suitcases, statistics

A memorandum of understanding, often simplified as MOU form, is a formal, non-binding agreement between two or more parties outlining the terms and details of an understanding. These multilateral or bilateral agreements offer a framework for a relationship of cooperation and coordination, delineating the obligations and responsibilities of each involved party.

When to Use a Memorandum of Understanding

The employment of a memorandum of understanding form is extensive and diverse. The primary purpose of a memorandum of understanding is when all involved entities need an official mutual agreement but wish to circumvent the rigid legal obligations generally associated with formal contracts. Instances such as preliminary commercial discussions are examples of parties aiming to consolidate their intentions without committing themselves to definitive terms or premature steps in the dialogue process. 


  • Promisor — This is the entity or individual who commits to certain terms and conditions within the memorandum of understanding. The promisor outlines what they are willing to deliver or conduct in line with the agreement's terms. Upon properly fulfilling the tasks or terms defined in the memorandum, the promisor has satisfactorily met their obligations. 

  • Promisee — This is the individual, corporation, or other entity that receives the commitments made by the promisor in the memorandum of understanding. The promisee's role is to acknowledge and accept the terms set by the promisor. Once the terms of the memorandum of understanding are met by the promisor, the promisee validates the fulfillment of specified tasks or actions established within the memorandum. 

After thorough validation, the promisee often acknowledges the completed obligations, cementing the success of the agreement and potentially leading to further cooperation or agreements. An example of a memorandum of understanding can demonstrate this concept.

Key Terms

  • Term: The time period during which the memorandum of understanding is in effect.
  • Termination: The conditions that warrant the agreement's end.
  • Dispute resolution: The process to resolve any disputes between the parties.
  • Confidentiality: The obligation to keep certain information confidential.
  • Amendment: The procedure to make changes to the agreement.

How to Write a Memorandum of Understanding

Writing a memorandum of agreement between business partners demands a high level of attention to detail and thoroughness. It's vital that the memorandum includes several specific elements to ensure a clear and mutual understanding between all parties involved.

To make a memorandum understanding draft, you should know these elements:

  1. Purpose of the memorandum of understanding:
    The main reason or objective behind the agreement should be clearly stated. Reviewing an MOU example can help you better understand how best to articulate the purpose in a concise and comprehensive manner.

  2. Scope of work:
    This refers to the breadth and limitations of the tasks, duties, or services encompassed by the agreement. The MOU format can guide you to clearly define these elements of the agreement, thereby leaving minimal room for misunderstandings.

  3. Roles and responsibilities of each party:
    Concise descriptions of what each party involved in the memorandum is expected to do or provide. To adequately illustrate this aspect of the document, reviewing examples or memorandum of understanding formats could be advantageous.

  4. Term and termination clauses:
    This section should outline the effective period of the memorandum of understanding, including any conditions that may lead to its termination.

  5. Dispute resolution procedures:
    Steps to be followed or mechanisms put in place should disagreements or issues arise during the memorandum of understanding's active term. 

Crafting a memorandum of understanding necessitates precision, comprehensiveness, and understanding. For this reason, using an MOU template free of charge can be particularly beneficial. This template provides a clear structure that captures all the necessary components of a memorandum, such as the purpose, scope of work, roles and responsibilities, term and termination clauses, and dispute resolution procedures. Leveraging such a memorandum of understanding template not only saves time and effort but also enhances the efficiency and efficacy of the document creation process.

In the world of business and collaboration, misunderstandings can lead to bitter disputes. Utilizing a letter of understanding template can be important in this regard. This document lays the groundwork for the parties. The letter of understanding clearly delineates the nature of the relationship, responsibilities, and expectations of involved parties, helping to minimize the chances of future conflicts.