MOU Full Form is Memorandum of Understanding. MoU is a legal or formal agreement made between two parties or more. Most often, official partnerships between organizations and companies make use of MOU. Though it is not a legal bond, it carries a high degree of mutual respect and seriousness, which is more than just a gentleman’s agreement. This can be stated as the initial step to a legal contract.
MOU in the US law, is equivalent to LOI or Letter of Indent, which is a written agreement. MOU is quite popular in global relationships, as it is quickly ratified and is kept confidential as per requirement. At times MOU is also used for modification of existing legal deals. Thus MOUs often have realistic treaty status.