A memorandum of understanding is often used before the parties are willing to enter into a formal agreement. The parties may use a Memorandum of Understanding to outline expectations and responsibilities before a full agreement has been reached. When entering into a legal transaction, the parties have two options at their disposal, to say an agreement or a statement of intent. While an agreement refers to the agreement between the legally competent parties, which is usually negotiated. Conversely, the Memorandum of Understanding (MoU) is a type of agreement between legally competent parties that is not binding. . . .