How to Write a Memo of Understanding

A good MoU needs to be mutually beneficial.

A memorandum of understanding is an agreement between parties that spells out what each signing partner hopes to gain. Also, referred to as a letter of intent, a memo of understanding may be legally enforceable. The wording is crucial. You can craft one that is clear and can withstand legal challenges. By taking the time to be thorough, you can create a memo that will ensure a mutually beneficial relationship.

Instructions

1. Define the relationship between parties before you begin drafting the memo of understanding. Is this a letter spelling out an agreement between purchaser and vendor, supervisor and employee or between peers in a business or government agency?

2. Indicate what role or function the parties to the agreement have to shoulder. Spell out in detail the responsibilities and make sure you leave nothing to chance.

3. Set the length of the agreement and when it would need to be reviewed and renewed. The time line is an important factor in the overall expectations of the signatory parties.

4. Figure out how you define success. The memo should be written in a way that is mutually advantageous, even if it is not binding.

5. Draft the memo and have the parties read it over and make alterations before a final copy is signed and goes into effect. Changes are best made in the preliminary stage. The final version needs to be dated.

References

• Sample Memorandum of Understanding