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Memorandum of understanding
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<p>A memorandum of understanding (MoU) is a type of agreement between two (<a href="/facts/Bilateralism/YPD9cK9G">bilateral</a>) or more (<a href="/facts/Multilateralism/nSgHsg8m">multilateral</a>) parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used either in cases where parties do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a <a href="/facts/Gentlemen%27s_agreement/rkBoaNMK">gentlemen's agreement</a>. </p><p>Whether a document constitutes a binding contract depends only on the presence or absence of well-defined legal elements in the text proper of the document (the so-called "<a href="/facts/Four_corners_(law)/0k6RJnYn">four corners</a>"). The required elements are <a href="/facts/Offer_and_acceptance/FaljA6pj">offer and acceptance</a>, <a href="/facts/Consideration/78wBVflY">consideration</a>, and the <a href="/facts/Intention_to_be_legally_bound/oJ42kBHm">intention to be legally bound</a> (<i>animus contrahendi</i>). In the US, the specifics can differ slightly depending on whether the contract is for goods (falls under the <a href="/facts/Uniform_Commercial_Code/rzV7JzNb">Uniform Commercial Code</a>) or services (falls under the common law of the state). </p><p>Many companies and government agencies use MoUs to define a relationship between departments, agencies or closely held companies. </p> Look up <i>memorandum of understanding</i> in Wiktionary, the free dictionary.