Free Memorandum of Understanding Template

Try out our MOU template for free to create a document that outlines an agreement between 2 parties. Use your document to set the terms of a non-enforceable contract made in good faith.

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Please take notice:
  • Use a Memorandum of Understanding to outline the terms of your agreement and show the parties' intent to negotiate in good faith. Note that it is not legally binding.
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Last Update October 7th, 2025

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Table of Contents:

What Is a Memorandum of Understanding?

A Memorandum of Understanding (MOU), is a type of agreement written in good faith that provides the terms of a negotiation or transaction that will later be placed in a formal legal contract between 2 or more parties.

However, unlike a Letter of Intent, it gives a broad outline of the terms and conditions while an LOI only states the commitment to work together with another party.

It defines the roles and responsibilities of each party involved, acting as a guide to the terms of the future binding agreement.

An MOU is typically used to provide a structure for:

  • Treaties.
  • Purchases.
  • Partnerships.

Use our MOU template to help you outline a document that lays out all the terms of your agreement with another party.

Reasons To Create a Memorandum

In certain situations, using a normal or business Memorandum of Understanding can be a significant first step to formalizing a transaction or negotiation.

You or another party may not want to jump into signing anything, and if that’s the case here are some reasons why you should use an MOU:

  1. Builds relationships: Crafting an MOU involves open communication and negotiation between all parties involved.
  2. Formalizes informal agreements: A Memorandum of Understanding provides a written record of agreements that might otherwise be informal or verbal.
  3. Demonstrates intent: It symbolizes the intention to proceed with a joint endeavor, establishing initial trust and mutual understanding.
  4. Provides clarity and direction: MOUs help provide a clear roadmap of what each party is expected to contribute to a partnership or project.

What Should Be Included in a Memorandum of Understanding?

For the MOU to serve its purpose, you have to make a document that mentions all the correct information.

You and any other party involved should also be comfortable with every element that makes up the Memorandum of Understanding.

Here is what should be part of your document:

Key Elements to Include in a Memorandum of Understanding

With these details included you should have everything covered to satisfy both parties in the agreement.

How To Write a Memorandum of Understanding

Once you are certain that you know which terms and information should be included in your Memorandum of Understanding, it’s now essential to know how to add them to your document.

Take a look at the steps below to help you draft your MOU.

  1. Identify the parties: List all parties involved. Include full names and addresses for individuals, or full legal names and primary locations for organizations.
  2. Mention the date: Write the date that the MOU will go into effect.
  3. Define the purpose: Mention the reason that you and the other party are creating the MOU.
  4. Outline roles and responsibilities: List out the roles and responsibilities of each party. Be as specific as possible to avoid misunderstandings down the line. Each party's duties and contributions should be detailed clearly.
  5. State the terms: Include any specific terms and conditions that govern the agreement, such as confidentiality requirements, intellectual property management, or dispute resolution mechanisms.
  6. Specify resource allocation: Describe what resources each party will contribute, such as funds, staff, equipment, or facilities.
  7. Include an amendment procedure: Outline the process for making changes or amendments to the agreement.
  8. Write a termination clause: Specify under what conditions the agreement can be terminated by either party.
  9. Add a disclaimer: State that it's an agreement made in good faith, outlining intentions and expectations.
  10. Obtain signatures: Have each party sign and date the document. This shows agreement and understanding of the contents of the Memorandum.

Take advantage of our Memorandum of Understanding template as a base to help you write your document in minutes.

Sample Memorandum of Understanding

If you still aren’t sure how to structure an MOU, you can check out our sample below.

Ensure you study the correct Memorandum of Understanding format and vocabulary in the example below.

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Memorandum of Understanding Sample

Other Business Documents

When making certain documents related to transactions you’ll want to guarantee that you can make a fair agreement for every party involved.

Here are similar documents that can help you in various legal and business-related situations:

Reviewing these documents can help ensure that different types of formal transactions or agreements you make in the future can be made easily.

FAQs About MOU Agreement

There is confusion at times regarding how MOUs work. For example, many people want to know the differences between Memorandums of Understanding vs. contracts.

For that reason, we have answered some typical questions below regarding how Memorandums of Understanding can be used and drafted.

Is a Memorandum of Understanding Legally Binding?

In general, a Memorandum of Understanding is not considered legally binding.

It is often used as a tool for outlining a mutual understanding of a shared goal or a collaborative project between two or more parties.

However, while these documents are typically non-binding certain sections within the document, such as confidentiality, intellectual property, or dispute resolution clauses, could potentially be enforceable if they are drafted in clear, explicit, and definitive terms.

Who Prepares Memorandums of Understanding?

You can use our Memorandum of Understanding template as a reliable basis to complete the document preparation process.

Once you have your customized document, your Memorandum of Understanding can be reviewed by a lawyer who specializes in business law.

Can an MOU Be Revoked?

Yes, a Memorandum of Understanding can generally be revoked or terminated, given its non-legally binding nature.

However, the specific terms for terminating the agreement would typically be outlined in the document itself.

Most MOUs include a termination clause that specifies the conditions under which the agreement can be ended, such as a specified date or upon the completion of a project.

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Memorandum of Understanding Sample

You are only a few steps away from your own Memorandum of Understanding (MOU)!

Download our professional examples

Preview of your Memorandum of Understanding

MEMORANDUM OF UNDERSTANDING
      This Memorandum of Understanding (the "Document") is made on ________________________ (the "Execution Date"), between the parties (the "Parties") listed below:
_________ residing at _________

(individually the "Purchaser" and collectively the "Purchasers")
AND

_________ residing at _________

(individually the "Seller" and collectively the "Sellers")
      The Parties have entered into this agreement on their own free will. This Document will establish the general conditions to be used in a future real estate sale contract ("the Contract") between the Seller(s) and the Purchaser(s). The provisions included in this Document are not exhaustive and may be changed or deleted, and additional ones may be added. The Parties agree to the following terms and conditions:
1. BACKGROUND AND PURPOSE

     • The Seller(s) are the legitimate owners of real property that is currently available for sale.

     • The Purchaser(s) wish to purchase said real property from the Seller(s).
2. ENFORCEABILITY

     • This Memorandum only represents the details of an agreement between the Parties and therefore does not create a binding agreement between them and will not be enforceable. Only the Contract, duly executed by the Purchaser(s) and the Seller(s), will be enforceable. The terms and conditions of the Contract will override any terms and conditions contained in this Document. The Purchaser(s) and the Seller(s) are not prevented from entering into negotiations with third parties regarding the subject matter of this Document.
3. PROPERTY DESCRIPTION

     • This Document concerns the property (the "Property") located at:

           - _________.
4. PRICE AND PAYMENT

     • The total purchase price for the Property shall be the following: $_________ USD.

     • The Seller(s) shall be paid by the Purchaser(s) the amount of $_________ USD on or before the day _________ (the "Closing Date") as payment in full for the Property.

     • The Purchasers will take possession of the Property on the _________.
5. GENERAL OBLIGATIONS

     • Both Parties agree to act in good faith and to cooperate with each other in achieving the objectives outlined in this Document. Each Party shall use reasonable efforts to advance the mutual interests and goals of the Parties. This includes but is not limited to communicating openly and honestly, and working collaboratively towards common objectives. Both Parties acknowledge the importance of timely and accurate information exchange, and agree to promptly inform each other of any issues or developments that may impact the goal of this Document.
6. WARRANTIES

     • The Seller(s) is not aware of any material facts that would affect the value of the Property, except those observable by the Purchaser(s) or known to the Seller(s) and stated in this Document. The Seller(s) also warrant(s) that the Property is free and clear of any liens, charges, encumbrances or rights of others which under no circumstance will be satisfied out of the sale proceeds. If any of these affirmations of the Seller(s) are found to be false upon the Closing Date, the Purchaser(s) reserve(s) the right to terminate any future agreement without incurring any penalties.
7. FINANCING REQUIREMENT

     • The Contract will be subject to the Purchaser(s) being approved for all financing by the Closing Date. Should the Purchaser(s) fail to secure adequate financing by the Closing Date, despite diligent efforts and good faith, either Party may cancel the Contract.
8. CONFIDENTIALITY

     • Both Parties agree to keep all information exchanged during the negotiation and execution of this Document confidential. Each Party agrees not to disclose this information to any third party without prior written consent from the other party, except as required by law.
      This Document accurately reflects the understanding between the Seller(s) and the Purchaser(s), signed on this day ________________________.

________________________
_________ (Purchaser)

________________________
_________ (Seller)
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Please take notice:
  • Use a Memorandum of Understanding to outline the terms of your agreement and show the parties' intent to negotiate in good faith. Note that it is not legally binding.