What Role Does a Memorandum of Understanding (MOU) Play in Verifying a Partnership?

An MOU is a non-binding agreement between two or more parties that outlines the general understanding and intent to collaborate or form a partnership. While it signifies a serious intent to work together, it is not a legally enforceable contract and does not guarantee the partnership will materialize or succeed.

For investors, a verifiable MOU provides stronger evidence of a genuine relationship than a mere claim, but it should be viewed as an initial step, not a final confirmation of a deep integration. Investors should still seek evidence of execution beyond the MOU.