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An MOU is a document
that records the common intent of two or more parties where the parties do not
wish to assume legally binding obligations. An MOU is usually less complex and
less detailed than a contract, but provides a framework and set of principles
to guide the parties in undertaking a project or working arrangement.1
MOU can assist
government departments and agencies clarify roles and responsibilities and
manage expectations associated with projects and endeavors that are to be
undertaken with other government parties or non-government parties. Non-binding
MOU may be terminated without legal consequence in some circumstances. This
flexibility is considered to be a significant advantage for government.
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