Memorandum of understanding

A memorandum of understanding (MoU) is a type of agreement between two (bilateral) or more (multilateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action.^[1] 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 gentlemen's agreement.^[2]^[3]

"MoU" redirects here. For other uses, see MOU (disambiguation).

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 "four corners"). The required elements are offer and acceptance, consideration, and the intention to be legally bound (animus contrahendi).^[4] In the US, the specifics can differ slightly depending on whether the contract is for goods (falls under the Uniform Commercial Code) or services (falls under the common law of the state).

Many companies and government agencies use MoUs to define a relationship between departments, agencies or closely held companies.^[5]

In private enterprise[edit]

In business, an MoU is typically a legally non-binding agreement between two (or more) parties, outlining terms and details of a mutual understanding or agreement, noting each party's requirements and responsibilities—but without establishing a formal, legally enforceable contract (though an MoU is often a first step towards the development of a formal contract).^[2]^[3]

In government and public affairs[edit]

In the United Kingdom, the term MoU is commonly used to refer to an agreement between parts of The Crown. The term is often used in the context of devolution, for example the 1999 concordat between the central Department for Environment, Food and Rural Affairs and the Scottish Environment Directorate.

MoUs can also be used between a government agency and a non-commercial, non-governmental organization.

The Memorandum of Understanding Relating to the Treaty between the United States of America and the Union of Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile Systems on May 26, 1972 signed by the (Richard Nixon) and the Soviet Union (Leonid Brezhnev) updating the Anti-Ballistic Missile Treaty^[9]

United States

The Memorandum of Understanding on Hijacking of Aircraft and Vessels and Other Offenses between the US and , meant to criminalize hijacking in both countries (February 3, 1973)

Cuba

The agreement between the and Cuba, under which Cayman immigration officers must give Cuban refugees two choices: disembark and be repatriated back to Cuba, or continue on their way with no help.^[10]

Cayman Islands

The between the U.S. and North Korea over nuclear weaponry on October 21, 1994

Agreed Framework

The , for which Iraq signed an MoU in 1996

Oil-for-Food programme

The agreement between the government of and the GAM in the Aceh peace process, 15 August 2005.

Indonesia

The agreement between the and Jordan, Libya and Lebanon regarding potential extradition of suspects (commonly terrorist suspects), who, if they are to be tried, must be tried fairly and in a manner similar to the European Convention on Human Rights; for example, withholding from using evidence obtained through the use of torture (Article 3). Such an understanding has been criticised for its inability to be legally enforced. This has been highlighted in the current deportation process of the suspected terrorist Abu Qatada, who is wanted by Jordan in connection with a terrorist attack. However, at present, the Court of Appeal has rejected the UK Government's appeal based on the Court's concern of Jordan obtaining evidence potentially incriminating Qatada through the use of torture.

UK

The Memoranda of Understanding on Labour Cooperation between the , Singapore and New Zealand on 2008, in parallel with their respective free trade agreements

People's Republic of China

The is a 2015 memorandum of understanding which sets climate change mitigation goals for jurisdictions with over 1 billion residents.

Under2 Coalition

On December 2, 2019, the and the Saginaw Chippewa Tribal Nation signed an MoU to co-manage the Sanilac Petroglyphs Historic State Park. The agreement marks the first state-tribal co-management of a Michigan state park.^[11]

Michigan Department of Natural Resources

The for interagency agreements with the Office on Violence Against Women (OVW) from the U.S. Department of Justice.

generic sample template

Examples from U.S. law include:

Examples from international development contexts include:

Gentlemen's agreement

Letter of comfort (contract law)

Memorandum of conversation

Letter of intent

. MOU. Guardian News. Feb 24, 2019. Archived from the original on 2021-11-07. (Trump) I don't like MOUs because they don't mean anything.