Known in Portuguese as “Memorando de Entendimento”, but often used in its English version.
Mou is a pre contract that outlines the terms of a future agreement.
It is very useful for startups that lack registered social contracts, in a stage in which the partners have not concluded any concrete negotiation.
An MOU can also be used for transactions between companies of any size, for establishing a common line of actions in a specific project or in merger and acquisitions.
Among its many clauses, it is important that a MOU details a project, including mentions about the parties involved and their role in it, value investing and its payback as well as the conditions for concluding the negotiation or setting up a company.
