MOU

A non-binding statement of intent between parties.

A memorandum of understanding records a mutual intent to cooperate and outlines the broad expectations between parties, but it is generally not legally binding. It is useful early in a relationship to establish goodwill and a shared framework before detailed contracts are negotiated. Because it lacks enforceable obligations, critical security and service commitments belong in binding documents instead. On the exam it is commonly distinguished from the MOA, which assigns concrete responsibilities, and from contracts such as the MSA and SLA.