Gatekeeper Contract and Vendor Management Glossary

Search common contracting language and take a deeper dive to discover what each means

Memorandum of Understanding (MoU)

A Memorandum of Understanding is an agreement between two or more Parties, indicating their willingness and desire to move forward to a Contract.

This MoU is defined by a common shared goal and differs from a contract because it is: 

  • Less formal than contracts
  • Non-binding, offering greater flexibilities to Parties
  • Less detailed, more simplified and offers guidelines for each contributing Party. 

Many see MoU as a gentleman's agreement allowing multiple parties to work together towards the same goal.