what is the differences betwen a Mou and a Loi?

the differences betwen a memorandum of understunding and a Letter of intention

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  • 1 decade ago
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    A memorandum of understanding (MOU) is a legal document describing a bilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action, rather than a legal commitment. It is a more formal alternative to a gentlemen's agreement, but generally lacks the binding power of a contract.

    A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized.

    LOIs resemble written contracts, but are usually not binding upon the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements or covenants to negotiate in good faith. An LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.

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