Memorandum of Understanding/MOU

Overall Concept

A memorandum of understanding is a document that describes the broad outlines of an agreement that two or more parties have reached. MOUs communicate the mutually accepted expectations of all of the parties involved in a negotiation. While not legally binding, the MOU signals that a binding contract is imminent. The MOU is most often found in international relations. The memorandum of understanding ensures that everyone is on the same page while a prosecutor won't waste resources and time on upcoming negotiations.

RE: https://www.investopedia.com/terms/m/mou.asp#:~:text=A%20memorandum%20of%20understanding%20is,a%20binding%20contract%20is%20imminent.