basic difference between LoU and MoU

Question

Please let me help to clarify the difference between Letter of Understanding and Memorandum of Understanding; which one used for what purposes

Deadrat · Accepted Answer

I don't think there is any difference. You may be asking for the difference between a letter of intent and a memorandum of understanding. (These terms of art aren't usually capitalized unless they refer to a particular letter or memorandum, usually within the document itself.) Both are steps on the route to a contract. The former is signed by one party only and outlines suggestions for eventual contract terms. The latter is signed by all those who intend to be parties to the eventual contract, and gives the areas of agreement to be included in that contract.

A contract is a legally binding agreement between competent, freely-acting parties to exchange considerations (usually money for goods or services) according to terms consistent with the law and the public policy of the jurisdiction in the agreement is signed. Generally, letters of intent and memoranda of understanding are not legally binding, but courts have found them legally binding if they meet the requirements for contract formation.

basic difference between LoU and MoU

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