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An MOU isn't always legally binding, but it helps parties prepare for a future contract by outlining key concepts and expectations.
Communicating in clear terms what each party hopes to gain from an agreement can be essential to the smooth execution of signing a legal contract in the future. MOUs communicate the mutually accepted expectations of the people, organizations, or governments involved.

They are most often used in international relations because, unlike treaties, they can be produced relatively quickly and in secret. They are also used in many U.S. An MOU clearly outlines specific points of understanding. It names the parties, describes the project on which they are agreeing, defines its scope, and details each party's roles and responsibilities.
While not always legally enforceable, an MOU is a significant step because of the time and effort involved in negotiating and drafting an effective document. To create an MOU, the participating parties need to reach a mutual understanding.

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