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Memorandum of Understanding (MOU)

These types of agreements are sometimes referred to as "gentlemen agreements" and are most usually entered into between institutions of higher education, with individuals, or with local school districts, and can sometimes be a requirement of a grant proposal submission or grant award. The planned activity may or may not come to fruition as described in the MOU, however there is no penalty for failure.

A Memorandum of Understanding (MOU) is:
  • A contract between two or more parties planning to create a research or educational partnership,
  • Outlines the type of relationship that will be created, the objective for the relationship and the responsibilities of each party,
  • Not a legally binding agreement and therefore should not address formal plans for compensation, confidentiality, or intellectual property and licensing rights.