Define Mou Agreement

MOUs are less formal than treaties and generally contain fewer details and complexities, but they are more formal than handshake agreements, sometimes called gentlemen`s agreements. All types of entities use MOUs to establish guidelines for each party, while contributing to their efforts and resources to important projects. But in the end, it is because they are simpler and more flexible than treaties that parties choose MOUs. A Memorandum of Understanding (MOU) is somewhere between a written contract and a handshake agreement. It is a provisional written agreement in which the most important framework or conditions have changed, which they will later incorporate into a formal contract. A statement of intent is a useful tool because it ensures that all parties are on the same side. As a general rule, the document is not legally binding. However, if its content is similar to that of a treaty, it may be legally binding and therefore enforceable. During trade talks with a Chinese representative in Washington in April 2019, a reporter asked President Donald Trump how long he was waiting for the duration of declarations of intent between the United States and China. “I don`t like MOUs because they don`t mean anything,” the president replied.