A Memorandum of Understanding (MoU) is a written document that records an agreement between two or more parties before entering into a formal contract. It defines the intentions, responsibilities, and expectations of all parties involved, ensuring clarity from the very beginning.

In India, MoUs are widely used by businesses, startups, joint venture partners, NGOs, and individuals to set the groundwork for cooperation. While it may not always be legally binding, an MoU plays a crucial role in preventing disputes and strengthening professional relationships by ensuring mutual understanding.