Memorandum of Understanding Template
Set out the shared understanding and intentions of two or more parties before a formal contract.
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About Memorandum of Understanding
A memorandum of understanding, or MOU, is a document that records the intentions of two or more parties to work together. It outlines the purpose of the relationship, the roles of each party, and the general terms they have agreed to, often as a step toward a more detailed contract.
An MOU is typically used to show good faith and to align expectations early in a collaboration. Depending on how it is written, some parts may be binding while others are simply statements of intent, so the language should make clear which sections are meant to be enforceable.
This is a general template, not an official form or legal advice. Whether an MOU creates binding obligations depends on its wording and your situation, so review it carefully and consider legal advice before signing.
Who needs to complete it
- Businesses exploring a partnership or joint project
- Nonprofits and community groups planning to collaborate
- Parties negotiating terms before drafting a full contract
- Organizations documenting shared goals and responsibilities
How to fill out Memorandum of Understanding
- 1Enter the names and addresses of each party to the MOU.
- 2Set the effective date of the memorandum.
- 3Describe the purpose and goals of the relationship.
- 4State the responsibilities and contributions of each party.
- 5Note the term of the understanding and how it can end.
- 6Indicate which sections, if any, are meant to be binding.
- 7Add any conditions that must be met to move forward.
- 8Have each party sign and date the document.
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Frequently asked questions
Is a memorandum of understanding legally binding?
An MOU may or may not be binding, depending on its wording and the intent of the parties. Some MOUs are statements of intent, while others include binding clauses such as confidentiality, so the document should say which parts are enforceable.
How is an MOU different from a contract?
An MOU usually sets out shared intentions and a framework for working together, often before a detailed contract. A contract is designed to create enforceable obligations with specific terms.
When should I use an MOU?
An MOU is useful early in a relationship to align expectations and show good faith before parties commit to a full agreement. It can serve as a foundation for a later contract.
Can I rely on this MOU template?
This is a general template and not legal advice, and laws vary by state, so confirm your local requirements and consider consulting an attorney before you rely on it.