What is the Difference Between MOU and MOA?

The main difference between a Memorandum of Understanding (MOU) and a Memorandum of Agreement (MOA) lies in their purpose and legal binding nature.

• Memorandum of Understanding (MOU): An MOU is a legal document that describes a bilateral agreement between parties, expressing a convergence of will between them and indicating an intended common line of action. However, it generally lacks the binding power of a contract and is a more formal alternative to a gentlemen's agreement. MOUs are often used for simple common-cause agreements and are not legally binding.
• Memorandum of Agreement (MOA): An MOA, on the other hand, establishes common legal terms that create a "conditional agreement" where the transfer of funds for services is anticipated. MOAs are legally binding documents that hold the parties responsible for their commitments. They are often used as a basis for reimbursement, defining the billing and payment process, and other terms and conditions of the agreement.

In summary, MOUs are more focused on expressing the intentions of both parties to collaborate, while MOAs are legally binding documents that establish the terms and conditions for future services and commitments.

Comparative Table: MOU vs MOA

A table comparing the differences between a Memorandum of Understanding (MOU) and a Memorandum of Agreement (MOA) is as follows:

In summary, an MOU is a more informal document that expresses the intentions of the parties to work together, while an MOA is a more formal and detailed document that establishes specific responsibilities and actions to be taken by each party. An MOU generally is not legally binding, whereas an MOA can be legally binding.