An MoU is a an agreement entered into that establishes formal ties between the parties. While largely unenforceable, it establishes intent to enter into legally binding obligations / partnerships on a variety of matters. MoU’s are generally entered into where the parties are exploring synergies but do not want to be too strict on the manner in which it would work out. An MoU is mostly followed by a proper legally enforceable agreement which establishes the legal relation between the parties.
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