Memorandum of understanding

This memorandum of understanding (MOU) records the preliminary understanding and intent between two or more parties proposing to work together in India. It sets out the parties, the purpose and scope of the proposed collaboration, the roles and contributions of each side, the broad commercial understanding, timelines, and confidentiality. It usually clarifies which terms are binding (such as confidentiality and exclusivity) and which are non-binding pending a definitive agreement, along with term, termination and governing law. Companies and institutions use it to align expectations before signing detailed contracts.