Memorandum of understanding
Also called: MOU
ELI5
A document that records a shared understanding or intended cooperation, with legal effect depending on drafting.
Used in conversation
“Counsel wants memorandum of understanding clarified before anyone signs.”
Definition
A document recording a shared understanding or intended cooperation, with legal effect depending on drafting.
Here “Memorandum of understanding” means: A document recording a shared understanding or intended cooperation, with legal effect depending on drafting.
Pitch context
You will see “Memorandum of understanding” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches commercial agreements & supporting documents.
Why it matters: In commercial agreements & supporting documents, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- U.S. Acquisition.gov — Federal Acquisition Regulation Part 15 — Contracting by NegotiationDirect source · primary · checked 2026-08-16
- UK Government — Groceries Supply Code of PracticeDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Supporting source family · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16