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Memorandum of understanding template

Memorandum of understanding (MOU): A memorandum of understanding (MOU) records the main terms two parties intend to agree before a final contract, and is usually not legally binding except for specific clauses.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use a memorandum of understanding (MOU)

  • Early-stage partnerships
  • Collaborations with universities, NGOs or public bodies
  • Aligning on terms before lawyers draft the final contract

Memorandum of understanding template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Purpose

    This MOU records the parties’ shared understanding of a proposed collaboration on [topic].

  2. Key terms

    The parties intend that [Party A] will [role] and [Party B] will [role], on the principal terms in Schedule 1.

  3. Non-binding

    This MOU is not legally binding, except for the clauses on confidentiality, costs and governing law.

  4. Confidentiality

    Each party will keep the other’s confidential information private.

  5. Costs

    Each party bears its own costs.

  6. Duration

    This MOU lasts until [date] or until a definitive agreement is signed.

What to check before you sign

  • Is it clear which clauses are binding?
  • Could conduct or wording accidentally create a binding contract?
  • Is there a date by which a final agreement is expected?

How to send a memorandum of understanding (MOU) for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Memorandum of understanding template: frequently asked questions

Is an MOU legally binding?

Usually not, if it says so clearly. Courts may treat it as binding if the wording and the parties’ conduct show they intended to be bound.

MOU or letter of intent?

Similar tools. LOIs are more common for transactions such as acquisitions; MOUs for collaborations.

Is an electronically signed memorandum of understanding (MOU) legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get a memorandum of understanding (MOU) I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

Letter of intent templateLetter of intent (LOI)Joint venture agreement templateJoint venture agreementNDA templateMutual non-disclosure agreement

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.