Definition
A document outlining an agreement between parties that may or may not be legally binding, depending on who you ask and how expensive their lawyer is. It's the legal equivalent of a pinky promise, with slightly more formality.
Example Usage
The two companies signed a memorandum of understanding to explore a potential merger, though neither was fully committed yet.
Origin
Emerged in diplomatic and business contexts in the early 20th century as a less formal alternative to binding contracts
Fun Fact
Courts have split on whether MOUs are enforceable contracts, leading lawyers to joke that MOU stands for 'Memorandum of Uncertainty.'
Source: Common legal terminology
Related Terms
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See “memorandum of understanding” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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