Letter of Intent / Memorandum of Understanding (LOI/MOU)

A Letter of Intent (LOI) or Memorandum of Understanding (MOU) is a preliminary, non-binding document that outlines the basic terms of a proposed agreement between two or more parties. It reflects mutual interest and intent to move forward with negotiations or formal contracts.

Key features include:

• Summary of the proposed transaction or collaboration

• Roles, responsibilities, and expectations of each party

• Timeline for finalizing a binding agreement

• Confidentiality, exclusivity, or non-solicitation provisions (if applicable)

• A clear statement on which parts are binding and which are not

An LOI or MOU helps establish trust, clarify key terms early, and guide future contract negotiations—especially useful in business deals, joint ventures, and partnerships.