Thus it can be said that MOU is a prelude to a composite agreement giving broad terms of mutual understanding and has to be read along with detailed agreement on the specfics to be reached later. To better manage your customers expectations or an agreement between two or more parties, a SLA and/or a MOU needs to be negotiated.
In terms of HR, there could be a broad understanding with trade unions by way of MOU to provide for a resolution of issue, for example on wage revision understanding could be reached for giving a benefit of 25% but the details like pay scale, increments etc could be worked out mutually later. In ordinary parlance, MOU refers to a broad understanding reached between the parties whereas contract will be much more specific. A memorandum of understanding, or MoU, is a type of agreement between two or more parties that signifies a joint understanding and agreement of a common line of. Dear SRK & others, Legally speaking, in terms of Contract Act 1872, there is no difference between a MOU and contract where MOU is also an agreement reached between two parties capable of entering into an agreement on subject which is legally valid. What is MOU meaning in Agreement 10 meanings of MOU abbreviation related to Agreement: Agreement.