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A memorandum of understanding is an agreement between two or more parties outlined in a formal document. It is not necessarily legally binding, which depends on the signatories' intent and the language in the agreement, but signals the willingness of the parties to move forward with a contract.This Memorandum of Understanding (MOU) sets for the terms and understanding between the (partner) and the (partner) to (insert activity). Background. The sample used in this document is for a city that is setting up an MOU among disciplines for the use of an intra-jurisdictional interoperability channel. A memorandum of understanding (MoU) is a type of agreement between two (bilateral) or more (multilateral) parties. An MOU is a voluntary agreement between two parties that serves to formalize general requirements and confirm common goals and intentions. How to Write a Memorandum of Understanding (MOU)? A memorandum of understanding (MOU) is a formal agreement that outlines plans for a common line of action between two or more parties. A Memorandum of Understanding is a document that business partners use to confirm their intent to work together. This is a very important part of an MOU.