MOU indicates a mutual understanding between the parties and is an imminent contract. It has a great significance in high-stake business dealings and international treaties. Moreover, it consists of the duties and expectations of the parties involved in the agreement. Therefore, it is considered the initial step of negotiation. It gives the chance and motive of the talks. MOU or memorandum of understanding is the non-legal agreement between two parties showing familiar outlines agreed by both parties. Moreover, these are not legally bound document yet holds great importance for the law. It is an agreement between two parties showing a joint will or line of action.
MOU's full form is a Memorandum of Understanding. There are different types of agreements made based on the company's needs and the choice of its employees. Agreeing is necessary to avoid any future disputes among the company members.
