back icon



Memorandum of Understanding Template

A memorandum of understanding template is required when at least two parties want to formalize an agreement. While it is not legally binding, this document broadly defines the agreement that you wish to undertake along with the mutually accepted expectations. 

Once you start negotiations and reach an understanding, you need to demonstrate a willingness to commit to the agreement in question and show intent to move ahead. This is where the memorandum of understanding template comes in. 

Why do you need a memorandum of understanding template?

Memorandum of understanding (MOU) documents are most commonly inked during international treaty negotiations. However, they will also often be drawn up during business dealings that involve a lot of risk or/and money, such as mergers or acquisitions.

A memorandum of understanding template can be used for major contracts that are in the planning stages. These documents show mutual acceptance, consideration, and the intention to enter into a legal agreement.

Also known as a memorandum of agreement or letter of intent, an MOU is usually drawn up between people, organizations, or governments. It's also signed to indicate that the parties agree with the contents of the document.

Contents of a memorandum of understanding template

Whether you are explaining your intentions or outlining the conditions of a transaction, a memorandum of understanding template can come in handy without binding either party to a legal agreement. 

Here are the most important sections of this template and what they mean:

Introduction and background

The MOU needs to introduce the two (or more) parties involved in the agreement. It should also mention the date and the intent of the document. 

Try to provide as much background as you can about the two parties and their reason for collaborating.

Purpose of the MOU

If talks are ongoing regarding company A wanting to acquire company B, then the purpose here would be “to enter into an acquisition.” 

In this provision, you will highlight the issue that will be elaborated on in this MOU.

Mutually agreed upon objectives

Here, you will be outlining the many areas that both parties agree on. This section will vary quite a bit depending on the type of deal you’re discussing. 

For instance, an MOU that focuses on a deal between a reseller and a company will make note of the cost of the product when bought in bulk, the duration of the deal, the level of customer support offered, the exclusivity of the deal etc.

Below, you will see a few example understandings between two parties.

Term of the MOU

This section will cover how long the MOU will be valid and how it can be extended if both parties wish to prolong the agreement. 

Typically, you should be allowed to extend an MOU (or any other agreement) by putting the proposal in writing and getting that amendment approved by both parties.


A memorandum of understanding will often include sensitive business information. A confidentiality clause will protect this information from being shared unlawfully. 

Acknowledgement of the MOU

When the memorandum of understanding template is signed, the document will be validated. Signing also shows that both parties agree to the terms of the MOU. 

During Covid-19, it is best to sign MOUs and other documents via an eSignature app. Signeasy’s Android and iOS apps offer the most intuitive and easy to use interface, allowing both parties to sign from anywhere and at any time! 

Note: Ensure that the representative's name and the legal name of the organization are correctly entered. 

Benefits of a memorandum of understanding 

Long rounds of discussions and negotiations can get bogged down in “he said, she said” if they are not officially documented. Putting all the agreed-upon terms into an MOU, and having it signed by both parties, reduces uncertainty and the risk of future disputes. 

An MOU also works as a blueprint for whenever the parties decide to draw up an agreement in the future. That said, since the document is not legally binding, if either party wishes to change the terms of the association, there is nothing preventing them from doing so. 

If you are ready to create your own MOU, then check out our free memorandum of understanding template, and sign-up for Signeasy’s 14-day free trial to remotely sign and request a signature from the other party!

Memorandum of understanding template FAQs

Clearly, a memorandum of understanding template can help you avoid having to draft this document from scratch. But why do you need an MOU in the first place? Read on for answers to the most commonly asked questions about this document:

What is the purpose of a memorandum of understanding?

A memorandum of understanding template helps record items that have been mutually agreed upon by different parties before they are ready to commit to a legally binding deal. 

What is the difference between MOA and MOU?

An MOA is a document in which different parties agree to the terms of a shared goal, whereas an MOU is a conditional agreement between parties relating to the transfer of funds for services offered. The latter is raised before the support agreement/reimbursable order form. 

Neither document obligates the parties to perform any action and neither are legally binding.

What is the formatting of an MOU?

A memorandum of understanding template contains the details and terms of an agreement. It will include all the important provisions, with placeholders for case-specific details.

How do you write a simple memorandum of agreement?

  1. Open the memorandum of understanding template
  2. Make note of the parties involved, their details, and the purpose of the MOU 
  3. Include the salient points agreed upon by all parties
  4. Upload the draft of your MOU to Signeasy
  5. Attach a eSignature to the document
  6. Finalize the MOU and send it to the other party asking for their signature


Hello! We are excited that you are looking to use Signeasy’s memorandum of understanding template.

All you need to do is: 

1. Make edits to this template on Word

2. Upload the personalized file to Signeasy

3. Add fields where additional information must be provided

4. Sign the document

5. Hit “Finish”

6. Request a signature from the other party or parties

To get started, sign up for Signeasy’s free 14-day trial.

Template Preview

Memorandum of Understanding Template
Download Template

Want to know how Signeasy can benefit
your business?

Contact Sales