MOU Full Form Name

Full Form of MOU :

Memorandum of Understanding

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 Intent, 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.

MOU Full Form – Additional Information

An agreement of either bilateral or multilateral nature formed between 2 or more parties is referred to as the MoU or memorandum of understanding. A convergence of will is expressed by it between the participating parties. It indicates a common action line intended by these parties. An MoU is used in instances where a legal commitment is not implied. It is also used in instances when the creation of an enforced agreement of a legal nature is not possible for the parties. Thus, a formal alternative to a ‘Gentlemen’s Agreement’ is an MoU.

The text contained in the document decides the absence or presence of a binding contract. In order to do the same, the legal elements that must be present in the documents are animus contrahendi, consideration, acceptance, and offer. These elements are discussed later in the article. There may be a difference in these statistics in nations like the US. This depends on the category of the contract, that is, whether it comes under the UCC or Uniform Commercial Code or it comes under the common state law.

Legal Ramifications

Although an MoU signifies the immanency of a legal contract, it cannot be defended legally. In it, specific points of an agreement or understanding must be outlined clearly. For example, the document must state the name of the participating parties, responsibilities of each party and their role, the document’s scope and much more. It aids the parties in moving them towards the intended agreement in a correct way, even though its legal binding is not possible.

Although an MoU cannot be enforced, it still has loads of power. This is because it takes a fair amount of resources, energy and time for drafting an effective document. This document helps in forcing the parties participating in it in reaching a mutual understanding. The parties mediate eventually for this and decide the essential factors that are needed to move towards an agreement that can provide advantages to both sides.


One of the legal elements necessary to mention in an MoU is offer. It is basically a statement which consists of the terms and conditions, in accordance with which an offeror accepts to be bounded. In other words, it states the necessary conditions and terms to the offeree which will be bound by the contract.

Numerous forms can be taken by the offer’s expression. These include conduct, newspaper advertisement, letter, email, fax, etc. The validity of an offer or an agreement reached between the two or more parties is determined with the help of a criterion called the objective test, which is used by the courts. For making the document valid for a binding contract, the presence of the contract’s essential terms is a must. For instance, a valid offer for the contract of the good’s sale must consist of a minimum of the four terms, which are the item’s detailed description and its condition, price, delivery date and payment terms like the payment date.

Acceptance and Consideration

The acceptance is another essential legal element. An act or a promise from the offeree that signifies the acceptance of bounding by the conditions and terms present in the offer is referred to as the Acceptance. It also includes the drawee’s acknowledgment that binds him or her to the draft’s terms.

The communication of acceptance involves numerous rules. The first rule is that in the acceptance’s communication, the clause related to the acceptance by silence cannot be included by the offeror. The unilateral contracts involve an exception. The acceptance of the offer made by the offeror to the world can be done with the help of an act. Another rule involved in this states that only the offeree can accept the offer, not any other person.

The consideration is something which has a certain value to the participating parties. The exchanging of this consideration takes place when the other party performs or promises the same. Sometimes, the consideration is the performance itself. The exchange of considerations takes place in a contract.

Animus Contrahendi

Animus Contrahendi is important in a contract. This term basically means the intentions that are used for creating legal bounds. This concept is used widely in the laws of contracts. It helps the courts in presuming that whether the parties participating in the contract desire it to be law enforceable.

A contract is said to be an agreement that can be legally binding. An agreement is forced when an offer is accepted. But this does not mean that it is a contract. The animus contrahendi is the element used for converting an agreement to a contract. Thus, a legal obligation is adopted by each party. In the case of breach, a seeking of remedy can be done by each party.

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