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Free memorandum of understanding (MOU) template (Word)

Reviewed by Clausery editors · · 3 min read

A document describing a shared understanding between two or more parties about a collaboration, project or partnership — often used between organisations, governments or co-founders before a formal contract.

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A memorandum of understanding (MOU) captures what parties have agreed to in a collaboration: goals, each party roles and responsibilities, resources, timeline, decision-making, and how the MOU can be ended. MOUs are common between businesses, nonprofits, universities and government agencies.

Most MOUs are non-binding statements of intent, but some are binding contracts depending on the language and context. Make it explicit whether the MOU is binding and whether a formal contract will follow.

What to include#

  • Parties. Name and address of each party, signing representatives, and date of the MOU.
  • Purpose / project. Clear description of the collaboration, project or relationship the MOU covers and its goals.
  • Roles and contributions. What each party will provide (funding, staff, space, IP, marketing) and key responsibilities.
  • Governance and term. How decisions are made, meeting cadence, primary contacts, start date, end date, renewal and termination.
  • Legal clauses. Confidentiality, IP ownership of outputs, non-binding statement (or binding clauses), insurance/indemnity if needed, and governing law.

How to fill it in#

  1. Step 1: Define the shared goal

    Write a one-paragraph purpose statement all parties agree on.

  2. Step 2: List contributions clearly

    Be specific about who is providing what — money, time, space, IP, access.

  3. Step 3: Decide binding or not

    If non-binding, state it explicitly; list any binding clauses (confidentiality, IP).

  4. Step 4: Set a term and exit

    State the MOU duration, renewal process and how either party can withdraw.

  5. Step 5: Sign and exchange

    All parties sign; each gets a copy. Move to a formal contract if the collaboration becomes financial or high-stakes.

Letter of intent

Cousin of the MOU used in transactions and deals.

Partnership agreement

Formal binding agreement for business partners.

Meeting minutes

Capture decisions from governance meetings under the MOU.

Statement of work

For specific project deliverables under an MOU.

Free contract templates

Full template library by category.

Questions

Is an MOU a contract?

Usually not — most are non-binding; but if it contains offer, acceptance, consideration and clear obligations, a court may enforce it as a contract.

What is the difference between MOU and MOA?

MOA (memorandum of agreement) tends to be more detailed and more often binding; MOU is generally a higher-level understanding.

Do I need a lawyer?

For collaborations between organisations or anything involving money/IP, yes — to ensure the binding/non-binding line is clear.

Do MOUs need a term?

Best practice is a fixed term (e.g. 12 months) with renewal option; open-ended MOUs can be hard to exit.

Can individuals use MOUs?

Yes — MOUs are useful for co-founders, creative collaborations and personal partnerships before a formal agreement is signed.

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These are general templates, not legal or tax advice. Have anything unusual reviewed for your jurisdiction.

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