Memorandum of understanding

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Memorandum of understanding
/ˌmɛməˈrændəm ɒv ˌʌndəˈstændɪŋ/ (Also, an “MOU”) (n.)

A posh — and gender appropriate — way of saying a “gentlemen’s agreement.”

A lawyer will tell you — is bound to tell you, with an existential shudder, that MOUs aren’t worth the paper they are written on, but lawyers operate in general structural defiance of the commercial imperative, so who cares what they think.

And while it is generally true this is also true, in a bigger picture sense, of any contract with a commercial value less than about £10 million, however legally binding in theory, since the cost of enforcing it means no-one in possession of sound mind and competent legal advice would launch legal action for a sum smaller than that.

See also

• Commercial imperative