A memorandum of understanding (MOU) is a nonbinding agreement between
two or more parties outlining the terms and details of an understanding,
including each parties' requirements and responsibilities.
It is an agreement that defines the framework of the negotiations among
the partners of a consortium and that is generally concluded in the very
beginning of the negotiations on the involvement in a project, even
before submitting a proposal. It expresses a convergence of will between
the parties, indicating an intended common line of action, helping to
explain any protocols for communication, information exchange,
reporting, confidentiality issues, and modifications and conditions for
terminating the agreement.