MoU Format Between Companies

When and how to use this letter

Use this MoU when two companies have agreed in principle and need a written framework before investing in full legal drafting. It is ideal for joint ventures, pilot projects, distribution discussions, and technology partnerships.

Send it as a PDF for signature once both sides have reviewed the wording. Because an MoU is usually non-binding, email exchange with confirmed acceptance is often sufficient, but a signed copy on company letterhead looks more serious and avoids later arguments about what was agreed.

Keep the tone cooperative and forward-looking. An MoU is a bridge to a contract, not the contract itself, so focus on shared goals, clear roles, and an honest statement of what remains to be negotiated. Avoid locking in prices or penalties here; those belong in the definitive agreement.

Include what to avoid: do not treat the MoU as permission to start spending. Until the final contract is signed, cap any preparatory costs and record them. Also avoid vague confidentiality terms; name what counts as confidential and how long the duty lasts after the MoU ends.

What happens next: negotiate the definitive agreement within the MoU's duration, using the MoU as the reference for intent. If talks stall, either party can exit with the stated notice, and the confidentiality duties survive. A practical tip: set a calendar reminder two weeks before expiry so the MoU never lapses silently while work is ongoing.

Frequently asked questions

Related templates