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Nonprofit Obligations Under a Memorandum of Understanding, by Lorman

Nonprofit Obligations Under a Memorandum of Understanding is brought to you by Lorman

Learn what a memorandum of understanding is and when one should be used.

A memorandum of understanding (MOU) is an agreement between two (bilateral) or more (multi-lateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action. 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. Interagency or intergovernment MOUs are probably more prevalent than non-governmental MOUs. However, the concepts are the same. It is a major undertaking for a government to enter into a binding arrangement, thus they use nonbinding MOUs.

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